South Korean Shares Rally on US-Iran Ceasefire

The benchmark KOSPI surged more than 5% to around 5,800 on Wednesday, rallying for a fourth straight session as easing geopolitical tensions fueled a broad risk-on sentiment. The move followed a two-week ceasefire between the United States and Iran and the reopening of the Strait of Hormuz, sending global oil prices plunging and easing inflation concerns. Lower energy costs improved the outlook for monetary easing and lifted investor confidence globally. At the same time, the Korean won strengthened against the US dollar, pointing to renewed capital inflows into regional equities. Strong domestic fundamentals also underpinned sentiment, with South Korea reporting a record current account surplus in February, driven by robust semiconductor exports. Notable gains were seen in Samsung Electronics (6.5%), SK hynix (9.4%), Hyundai Motor (4.3%), SK Square (15.2%), Doosan Enerbility (5.4%), KB Financial Group (7.0%), and Kia Corporation (3.7%).

The benchmark KOSPI rose 0.82% to close at 5,495 on Tuesday, extending gains for a third straight session, driven by a sharp rally in technology stocks and improving global risk sentiment. Investor optimism was led by Samsung Electronics, which jumped 1.76% after reporting record first-quarter operating profit fueled by robust demand for AI-related memory chips. The strong earnings surprise reinforced expectations of a sustained semiconductor upcycle, lifting SK hynix by 3.61% and supporting the broader index. Sentiment was further supported by Wall Street gains and signs of ongoing US-Iran negotiations despite heightened escalation risks in the Middle East, with Donald Trump signaling continued engagement amid renewed threats. Hopes for a reopening of the Strait of Hormuz helped ease concerns over energy supply disruptions, even as oil prices remained elevated. Gains were broad-based, with Hanwha Aerospace (5.86%), SK Square (2.67%), and Samsung Biologics (1.93%).

The benchmark KOSPI rose 1.36% to close at 5,450 on Monday, extending gains from the previous session as heavyweight semiconductor strength and easing energy concerns supported sentiment. Technology shares led the rally, with Samsung Electronics (3.79%) and SK hynix (0.91%) posting gains ahead of key earnings guidance, amid expectations of record quarterly profits driven by the ongoing AI-led memory upcycle. Among the top performers were LG Energy Solution (3.64%), SK Square (0.83%), KB Financial Group (1.99%), and Shinhan Financial Group (1.74%). Hopes for progress toward reopening the Strait of Hormuz further lifted sentiment, helping ease fears of prolonged supply disruptions and extreme oil price spikes. However, gains remained tempered by persistent geopolitical risks after Donald Trump renewed threats of military action against Iran, keeping markets sensitive to headlines and contributing to elevated volatility.