SEOUL, March 18 (AJP) - Asian stock markets opened higher Wednesday as concerns over supply chain disruptions involving the Strait of Hormuz eased slightly amid the prolonged Middle East conflict.
South Korea's benchmark KOSPI extended its gains from the previous session as improving sentiment toward chipmakers outweighed concerns over volatile oil prices.
Market sentiment remained fragile overnight amid rising crude oil prices and the ongoing U.S. Federal Open Market Committee (FOMC) meeting. Bust several reports that oil tankers have begun passing through the strategically important waterway helped ease supply concerns.
Kevin Hassett, a White House official said tanker traffic is resuming through the critical chokepoint for roughly one-fifth of the world's oil supply.
Geopolitical tensions remain high, however. U.S. President Donald Trump signaled a tougher stance on Iran as the Middle Eastern country continues retaliatory attacks including strikes near the UAE's Fujairah port, an alternative export route.
Oil prices rose on the lingering uncertainty. West Texas Intermediate crude gained 3.32 percent to settle at $95.53 per barrel, while Brent crude climbed 3.20 percent to $103.42.
At 9:41 a.m., Samsung Electronics surged 5.08 percent to 203,750 won, reclaiming the 200,000-won level for the first time since Feb. 27 before the outbreak of the conflict. SK hynix also rose 3.61 percent to 1,005,000 won, crossing the 1 million-won mark for the first time since the war began.
Other chip-related stocks traded higher as well, with SK Square gaining 5.45 percent, Hanmi Semiconductor rising 1.33 percent and Samsung Electro-Mechanics advancing 1.34 percent.
The rally followed gains in U.S. chip stocks, led by Micron Technology, which jumped 4.5 percent to a record high ahead of its earnings report, with expectations of a beat further boosting sentiment across the sector and spilling over into Korean equities.
In South Korea, Samsung Electronics is holding its annual shareholders' meeting at its headquarters in Suwon, Gyeonggi Province. Key agenda items reportedly include a special dividend worth 1.3 trillion won, along with amendments to its articles of incorporation aimed at strengthening minority shareholder rights.
Among other large-cap stocks, Samsung C&T rose 7.51 percent to 300,500 won, and Samsung Life Insurance advanced 12.67 percent to 244,500 won. SK Square climbed 5.96 percent to 622,000 won, and Samsung Biologics gained 2.52 percent to 1,627,000 won.
Automakers also traded higher, with Hyundai Motor up 3.93 percent at 542,500 won and Kia advancing 4.24 percent to 174,400 won, and Hyundai Mobis rising 4.12 percent to 429,500 won.
In the financial sector, KB Financial Group gained 2.52 percent to 154,500 won and Shinhan Financial Group rose 2.96 percent to 93,900 won. Among other notable movers, Doosan Enerbility added 2.97 percent to 107,500 won, HD Hyundai Electric jumped 4.19 percent to 970,000 won, and Korea Zinc climbed 3.29 percent to 1,665,000 won.
The gains were supported by expectations for alternative energy demand as oil prices fluctuated above $100 amid prolonged Middle East tensions.
As of 10:13 a.m., the benchmark KOSPI rose 3.72 percent to 5,850.28, and the tech-heavy KOSDAQ gained 1.16 percent to 1,150.17.
The Korean won strengthened to 1,487.00 per dollar from the previous close of 1,492.5.
Elsewhere in Asia, Tokyo stocks advanced, with the Nikkei 225 gaining 1.38 percent to 54,442.94 as easing concerns over oil supply disruptions prompted bargain buying. Semiconductor-related shares led the gains, tracking overnight strength in the Nasdaq. Advantest surged 4.16 percent to 24,525 yen, and Tokyo Electron rose 1.39 percent to 39,320 yen.
Sentiment was further supported by a report from the Mainichi Shimbun that Japan could signal increased imports of U.S. crude at an upcoming summit between Trump and Japanese Prime Minister Sanae Takaichi in Washington, D.C. later this week, easing supply concerns.
Hong Kong's Hang Seng Index rose 0.21 percent to 25,923.03. China's Shanghai Composite Index edged up 0.03 percent to 4,051.29. Taiwan's TAIEX also climbed 1.53 percent to 34,355.76 in the morning.
South Korea's benchmark KOSPI extended its gains from the previous session as improving sentiment toward chipmakers outweighed concerns over volatile oil prices.
Market sentiment remained fragile overnight amid rising crude oil prices and the ongoing U.S. Federal Open Market Committee (FOMC) meeting. Bust several reports that oil tankers have begun passing through the strategically important waterway helped ease supply concerns.
Kevin Hassett, a White House official said tanker traffic is resuming through the critical chokepoint for roughly one-fifth of the world's oil supply.
Geopolitical tensions remain high, however. U.S. President Donald Trump signaled a tougher stance on Iran as the Middle Eastern country continues retaliatory attacks including strikes near the UAE's Fujairah port, an alternative export route.
Oil prices rose on the lingering uncertainty. West Texas Intermediate crude gained 3.32 percent to settle at $95.53 per barrel, while Brent crude climbed 3.20 percent to $103.42.
At 9:41 a.m., Samsung Electronics surged 5.08 percent to 203,750 won, reclaiming the 200,000-won level for the first time since Feb. 27 before the outbreak of the conflict. SK hynix also rose 3.61 percent to 1,005,000 won, crossing the 1 million-won mark for the first time since the war began.
Other chip-related stocks traded higher as well, with SK Square gaining 5.45 percent, Hanmi Semiconductor rising 1.33 percent and Samsung Electro-Mechanics advancing 1.34 percent.
The rally followed gains in U.S. chip stocks, led by Micron Technology, which jumped 4.5 percent to a record high ahead of its earnings report, with expectations of a beat further boosting sentiment across the sector and spilling over into Korean equities.
In South Korea, Samsung Electronics is holding its annual shareholders' meeting at its headquarters in Suwon, Gyeonggi Province. Key agenda items reportedly include a special dividend worth 1.3 trillion won, along with amendments to its articles of incorporation aimed at strengthening minority shareholder rights.
Among other large-cap stocks, Samsung C&T rose 7.51 percent to 300,500 won, and Samsung Life Insurance advanced 12.67 percent to 244,500 won. SK Square climbed 5.96 percent to 622,000 won, and Samsung Biologics gained 2.52 percent to 1,627,000 won.
Automakers also traded higher, with Hyundai Motor up 3.93 percent at 542,500 won and Kia advancing 4.24 percent to 174,400 won, and Hyundai Mobis rising 4.12 percent to 429,500 won.
In the financial sector, KB Financial Group gained 2.52 percent to 154,500 won and Shinhan Financial Group rose 2.96 percent to 93,900 won. Among other notable movers, Doosan Enerbility added 2.97 percent to 107,500 won, HD Hyundai Electric jumped 4.19 percent to 970,000 won, and Korea Zinc climbed 3.29 percent to 1,665,000 won.
The gains were supported by expectations for alternative energy demand as oil prices fluctuated above $100 amid prolonged Middle East tensions.
As of 10:13 a.m., the benchmark KOSPI rose 3.72 percent to 5,850.28, and the tech-heavy KOSDAQ gained 1.16 percent to 1,150.17.
The Korean won strengthened to 1,487.00 per dollar from the previous close of 1,492.5.
Elsewhere in Asia, Tokyo stocks advanced, with the Nikkei 225 gaining 1.38 percent to 54,442.94 as easing concerns over oil supply disruptions prompted bargain buying. Semiconductor-related shares led the gains, tracking overnight strength in the Nasdaq. Advantest surged 4.16 percent to 24,525 yen, and Tokyo Electron rose 1.39 percent to 39,320 yen.
Sentiment was further supported by a report from the Mainichi Shimbun that Japan could signal increased imports of U.S. crude at an upcoming summit between Trump and Japanese Prime Minister Sanae Takaichi in Washington, D.C. later this week, easing supply concerns.
Hong Kong's Hang Seng Index rose 0.21 percent to 25,923.03. China's Shanghai Composite Index edged up 0.03 percent to 4,051.29. Taiwan's TAIEX also climbed 1.53 percent to 34,355.76 in the morning.
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