SEOUL, April 08 (AJP) - The prospect of the Strait of Hormuz reopening under a two-week ceasefire ignited Asian markets on Wednesday, sending South Korea’s benchmark KOSPI soaring nearly 7 percent.
The index, after jumping as high as 5,919.60, closed up 6.9 percent at 5,872.3. A buy-side sidecar was triggered shortly after the open as the KOSPI 200 surged more than 5 percent at the opening bell.
The rally was driven by a sharp reversal in global energy markets. Brent crude plunged more than 15 percent to $92.89 a barrel, while U.S. West Texas Intermediate fell 16.1 percent to $94.6, after U.S. President Donald Trump said he would delay military action against Iran for two weeks under a conditional ceasefire tied to the reopening of the Strait of Hormuz.
The de-escalation, reportedly accepted by Tehran and involving coordinated maritime access, eased fears of supply disruptions along a route that carries roughly 20 percent of global oil flows. The drop in crude prices tempered inflation concerns and triggered a broad risk-on move across global markets.
Investor positioning reflected the shift. Foreign investors bought 2.43 trillion won ($1.65 billion) worth of local equities, while institutions added 2.71 trillion won. Retail investors moved in the opposite direction, selling a combined 5.42 trillion won, indicating profit-taking into the rally.
Large-cap stocks led gains, particularly in semiconductors and cyclicals. Samsung Electronics rose 7.1 percent to 210,500 won, while SK hynix surged 12.8 percent to 1,033,000 won, supported by expectations of record first-quarter earnings and upward revisions in target prices.
Automakers also advanced, with Hyundai Motor gaining 7.4 percent to 508,000 won and Kia rising 5.6 percent to 159,200 won.
LG Electronics jumped 9 percent to 116,700 won after reporting record quarterly revenue, as analysts raised target prices on expectations of a structural shift toward robotics and AI-driven infrastructure.
In contrast, select defense stocks retreated, with Hanwha Aerospace falling 3.5 percent to 1,484,000 won, reflecting a decline in geopolitical risk premiums.
The tech-heavy KOSDAQ gained 5.1 percent to 1,089.9, trading between 1,071.35 and 1,090.04. Foreign investors bought 240.5 billion won, while institutions added 371.1 billion won. Retail investors sold 583.6 billion won, suggesting gains were driven by institutional and offshore inflows.
The Korean won strengthened sharply, with the dollar falling 26 won to 1,471.0 — the steepest drop since March 24 — as the dollar index slipped 1 percent to 98.7. Despite the rally, volatility remained elevated, with the VIX rising 6.7 percent to 25.78, underscoring lingering uncertainty.
Across the region, Japan’s Nikkei 225 climbed 5.5 percent to 56,360.2, while China’s Shanghai Composite rose 2.4 percent to 3,984.6 and Hong Kong’s Hang Seng gained 3.1 percent to 25,897.1, led by energy-sensitive and export-oriented sectors.
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