KOSPI rebounds as Middle East tensions show signs of easing

By Ryu Yuna Posted : May 29, 2026, 10:23 Updated : May 29, 2026, 10:35
An electronic board shows the KOSPI at Hana Bank's headquarters in central Seoul on May 29, 2026. Yonhap
SEOUL, May 29 (AJP) - South Korean stocks opened higher on Friday, recovering from a brief decline the previous day, as the benchmark KOSPI climbed back above 8,400 on hopes that the prolonged conflict in the Middle East could soon come to an end.

The KOSPI rose 2.31 percent to 8,374.58 shortly after trading began, nearing its recent intraday high of 8,457.09. The junior KOSDAQ, however, fell 2.31 percent to 1,078.89 as investors shifted toward large-cap stocks.

The rebound followed a volatile session the previous day, when the KOSPI closed 0.53 percent lower after briefly plunging more than 4 percent intraday, as the Bank of Korea kept its benchmark rate unchanged while hinting at future hikes.

The rally was largely driven by improved investor sentiment amid signs of easing tensions in the Middle East, with reports suggesting Washington and Tehran were nearing a deal.

Chipmakers led the gains, with Samsung Electronics up 4.34 percent to 312,500 won and SK Hynix up 3.23 percent to 2,363,000 won, boosting the broader market.

Automakers and auto-parts makers also rallied, with Hyundai Motor climbing 6.35 percent to 720,000 won, Hyundai Mobis advancing 6.12 percent to 728,000 won and Kia adding 3.47 percent to 170,000 won.

Technology and industrial shares traded higher, as Samsung Electro-Mechanics jumped 6.49 percent to 1,969,000 won, SK Square rose 1.13 percent to 1,251,000 won and HD Hyundai Heavy Industries gained 1.70 percent to 716,000 won.

Financial and holding-company stocks also advanced, with Samsung Life Insurance rising 1.12 percent to 361,500 won, Samsung C&T gaining 3.38 percent to 413,000 won and Samsung Electronics preferred shares climbing 6.08 percent to 202,500 won.

Defense-related shares remained firm, with Hanwha Aerospace adding 1.25 percent to 1,215,000 won.

But battery, biotech and energy shares underperformed, as LG Energy Solution slipped 0.11 percent to 441,500 won, Samsung Biologics fell 0.58 percent to 1,365,000 won and Doosan Enerbility declined 2.46 percent to 103,300 won.

Asian markets also opened broadly higher, with Japan's Nikkei 225 up 1.83 percent at 65,876.04, Hong Kong's Hang Seng Index rising 0.37 percent to 25,097.78 and China's Shanghai Composite adding 0.29 percent to 4,110.52.

Overnight, U.S. stocks climbed to fresh record highs. The Nasdaq Composite rose 0.91 percent and the S&P 500 gained 0.58 percent, while the Philadelphia Semiconductor Index advanced about 1 percent.

Investor sentiment was further boosted after Dell Technologies posted stronger-than-expected earnings and surged roughly 38 percent in after-hours trading, reinforcing optimism over AI-related spending. 

Lower oil prices and easing bond yields also supported risk assets. U.S. benchmark WTI crude fell to around $88 a barrel, while the yield on the 10-year U.S. Treasury note retreated to 4.44 percent.

Meanwhile, the Korean won strengthened slightly against the greenback in early trading, with the dollar trading at 1,498 won, compared with the previous session's close of 1,502.80 won.

Copyright ⓒ Aju Press All rights reserved.