South Korea's Kospi index rose as Samsung's stock price surged after reaching a preliminary agreement with the union.

The benchmark index Kospi of the South Korean stock market rose 4.8% at one point, as Samsung Electronics reached a preliminary agreement with the union, avoiding a strike. Samsung and SK Hynix made the biggest contributions to this index, with Samsung rising 7% at one point. The union confirmed the suspension of the planned strike scheduled from May 21 to June 7. "From the perspective of reducing uncertainty, the preliminary agreement reached between labor and management is positive," said Ha SeokKeun, investment director at Eugene Asset Management. "Investor attention may now shift back to Samsung's fundamentals. Due to concerns about a potential strike, Samsung's valuation is severely underestimated compared to SK Hynix, and we expect Samsung's stock price to rebound strongly." The smaller cap index Kosdaq in South Korea also rose 4.2% at one point.