South Korean Shares Surge on Iran Deal Hopes

The benchmark KOSPI climbed more than 7% to around 8,315 on Friday, extending gains from the previous session as hopes for a US-Iran peace agreement sparked a broad risk-on rally across global markets. President Trump said the US was nearing a deal with Iran and had called off planned military strikes, raising expectations of easing tensions in the Middle East. Falling oil prices further boosted sentiment as reduced supply concerns helped curb inflation risks. Additional support came from strong gains in semiconductor stocks, with Samsung Electronics surging 12.0% and SK Hynix advancing 8.5% as investors returned to AI-linked chipmakers following a rebound in US technology shares. Other notable gainers included SK Square (7.8%), Hyundai Motor (5.9%), LG Energy Solution (5.7%), Kia Corporation (4.9%), Doosan Enerbility (5.6%), and Hanwha Aerospace (5.7%).

The benchmark KOSPI rose 0.43% to close at 7,764 on Thursday, reversing earlier losses as investors turned optimistic on the outlook for the country's semiconductor sector. SK Hynix (2.64%) led the gains, alongside SK Square (3.80%), LG Energy Solution (1.04%), and HD Hyundai Heavy Industries (1.56%). Sentiment drew strength from South Korea's robust exports, which surged 86% year-on-year in the first 10 days of June to a record high, with semiconductor shipments more than tripling from a year earlier. Risk appetite was further supported by softer-than-expected US consumer inflation data, easing concerns over a more aggressive Federal Reserve policy stance. However, gains were capped by lingering geopolitical uncertainty after the US launched additional strikes against Iran, raising concerns over potential disruptions to shipping through the Strait of Hormuz and pushing oil prices higher.

The benchmark KOSPI traded lower to around 7,700 on Thursday, extending losses from the previous session amid weakness in global technology shares and escalating tensions in the Middle East. Chipmakers remained under pressure after a renewed selloff in US semiconductor stocks fueled concerns over stretched AI-related valuations, weighing on major Korean tech names. Samsung Electronics (-0.3%) edged lower, while Hyundai Motor (-3.0%), LG Energy Solution (-2.5%), Kia Corporation (-4.7%), Hanwha Aerospace (-5.0%), and Doosan Enerbility (-5.2%) posted sharper declines. Market sentiment was also dampened by rising geopolitical risks after the US threatened further military action against Iran, raising fears of supply disruptions in the Strait of Hormuz and pushing oil prices higher. Meanwhile, South Korea’s exports surged 86% year-on-year in the first 10 days of June, reaching a record high on robust semiconductor shipments and helping limit deeper losses.