SEOUL, April 20 (AJP) - Most Asian markets opened the week higher Monday despite conflicting developments in the Middle East ahead of the Tuesday expiration of the truce between the United States and Iran.
Hopes had risen last week that the conflict might ease and that the Strait of Hormuz would reopen, but Iran said over the weekend that the strait remained closed. Reports that two Indian-flagged vessels were forced to turn back added to concerns over the security of shipping through the critical waterway.
U.S. President Donald Trump said on Truth Social that Iran’s actions in the strait amounted to a “total violation” of the ceasefire and warned that Washington could take further action if Tehran rejected what he described as a “fair and reasonable deal.”
A new round of negotiations is expected this week in Pakistan, led by Vice President JD Vance, in a renewed push to end the conflict. However, significant gaps remain, and Iran has signaled it may not attend the talks, calling U.S. demands excessive. Pakistan previously brokered the two-week ceasefire, which is set to expire Tuesday.
Despite the geopolitical overhang, regional equities advanced.
Japan’s Nikkei 225 rose 1 percent to 59,075.49, holding above the 59,000 level after reaching a record high last week. China’s Shanghai Composite Index edged up 0.45 percent to 4,052.13, while Hong Kong’s Hang Seng Index gained 0.34 percent to 26,228.18.
China kept its benchmark lending rates unchanged for an 11th straight month, as policymakers weighed the economic impact of the Middle East conflict against resilient domestic growth and easing deflationary pressures. The People’s Bank of China held the one-year loan prime rate at 3.0 percent and the five-year rate at 3.5 percent.
South Korean equities also traded higher, with the KOSPI rising 1.21 percent to 6,266.65 and the KOSDAQ gaining 0.86 percent.
Among gainers, Doosan Enerbility climbed more than 5 percent, supported by expectations that heightened geopolitical risks could accelerate nuclear energy projects, particularly in the United States.
Chipmakers were also firm. Samsung Electronics reversed early losses to rise 0.69 percent, while SK hynix gained 3.06 percent.
Battery stocks rallied, with LG Energy Solution advancing 3.95 percent, while SK Square climbed 3.96 percent to a record high, supported by improving earnings expectations for SK hynix.
In contrast, automakers were under pressure, with Hyundai Motor falling 0.74 percent and Kia edging down 0.03 percent.
Financial stocks were largely steady, with KB Financial Group rising slightly, while Samsung Life Insurance slipped marginally.
On the secondary board, battery materials and biotech shares led gains. EcoPro and EcoPro BM moved higher, while Alteogen and HLB also advanced.
In the currency market, the Korean won strengthened modestly, with the dollar trading at 1,474.30 won, compared with the previous close of 1,483.5 won.
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