South Korean Shares Gain on Hormuz Reopening

The benchmark KOSPI rose more than 1% to around 8,640 on Tuesday, extending gains for a fourth straight session as easing tensions in the Middle East and lower oil prices supported sentiment. The move came after the US and Iran signed a preliminary agreement aimed at ending their conflict, with the Strait of Hormuz set to reopen later this week and remain toll-free during a 60-day ceasefire period, easing concerns over global energy supplies and shipping disruptions. Oil prices fell sharply on the news, reducing inflation concerns for South Korea, with data showing import prices fell for a second straight month in May amid lower crude oil costs. Semiconductor shares tracked overnight gains on Wall Street, supporting chipmakers. Among individual stocks, SK hynix rose 1.7%, while Hanwha Aerospace gained 7.1%, KB Financial Group added 4.5%, Shinhan Financial Group climbed 2.0%, and Doosan Enerbility advanced 2.8%.

The benchmark KOSPI climbed 5.20% to close at 8,546 on Monday, extending gains for a third straight session as a US-Iran peace agreement boosted risk appetite. Washington and Tehran reached a deal to end their monthslong conflict and reopen the Strait of Hormuz, with a formal signing ceremony expected later this week, easing concerns over global energy supplies and sending oil prices sharply lower. The rally was broad-based, with technology and cyclical stocks leading gains as investors returned to risk assets. Samsung Electronics (4.34%) and SK Hynix (6.28%) led the advance, along with SK Square (3.09%), Hyundai Motor (5.93%), LG Energy Solution (5.00%), HD Hyundai Heavy Industries (9.08%), Doosan Enerbility (7.09%), and KB Financial Group (5.21%). Additional support came from strong domestic fundamentals, with South Korea's ICT exports reaching a record high in May, driven by surging semiconductor shipments and sustained AI-related demand.

The benchmark KOSPI climbed 4.63% to close at 8,124 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 7.86% and SK Hynix advancing 4.05% as investors returned to AI-linked chipmakers following a rebound in US technology shares. Other notable gainers included SK Square (11.64%), Hyundai Motor (2.43%), LG Energy Solution (3.38%), Kia Corporation (5.83%), Doosan Enerbility (4.06%), and Hanwha Aerospace (7.50%).