South Korean Shares Rally on Cooling Oil Prices

The benchmark KOSPI climbed more than 2% to around 5,680 on Tuesday, extending gains for a second straight session, as easing oil prices lifted global risk appetite and supported energy-sensitive markets. Crude prices fell after efforts to stabilize tanker flows through the Strait of Hormuz, easing concerns over supply disruptions that had recently pressured inflation and the Korean won. The rally tracked strong gains on Wall Street, where major indexes advanced amid cooling energy prices and improving sentiment around the Middle East conflict, reinforcing a broader risk-on tone across global equities. Gains were led by heavyweight technology shares, with Samsung Electronics and SK hynix advancing 3.9% and 2.3%, respectively, on continued optimism around artificial intelligence demand. Other major stocks also rose, including Hyundai Motor (5.5%), LG Energy Solution (1.6%), SK Square (6.1%), and Kia Corporation (3.8%).

The benchmark KOSPI rose 1.14% to close at 5,550 on Monday, reversing from a two-day decline as gains in major semiconductor stocks lifted the index after a volatile session. Technology heavyweights led the advance, with Samsung Electronics and SK hynix jumping 2.83% and 7.03%, respectively, supported by sustained optimism over demand for artificial intelligence-related memory chips. Gains were largely concentrated in the technology sector, while many other stocks lagged as investors remained cautious amid mounting geopolitical risks. Escalating tensions in the Middle East kept energy markets on edge, with Brent crude oil hovering around $105 per barrel amid concerns over potential disruptions to shipments through the strategically vital Strait of Hormuz. The South Korean won also came under pressure, briefly weakening past the 1,500-per-dollar level for the first time since 2009, highlighting worries about imported inflation in the energy-dependent economy.

The benchmark KOSPI fell 0.2% to around 5,475 on Monday, extending losses from the previous session, as rising geopolitical tensions and currency volatility weighed on investor sentiment. Escalating conflict in the Middle East continued to pressure markets, pushing Brent crude oil above $100 per barrel after US strikes on Iranian military targets near the key export hub on Kharg Island. The surge in oil prices heightened concerns about inflation and growth risks for energy-importing economies such as South Korea. The Korean currency also added to market unease after the won briefly weakened past the 1,500-per-dollar level for the first time since 2009 before trimming losses, reflecting persistent pressure from the oil shock and risk-off flows in global markets. Meanwhile, major semiconductor stocks provided some support, with Samsung Electronics (+1.4%) and SK hynix (+3.5%) advancing on continued demand for artificial intelligence-linked memory chips.