The KOSPI rose 415.20 points to 8,538.82, up 5.1 percent, by mid-morning. Tokyo's Nikkei 225 jumped 5.3 percent to a year-to-date high, while Chinese markets lagged, the Shanghai Composite gaining 0.6 percent; in Seoul the advance was narrow, with chip and large-cap names soaring as the smaller-cap KOSDAQ ended barely changed at 1,030.18, up 0.1 percent.
Pakistani Prime Minister Shehbaz Sharif and U.S. President Donald Trump said Sunday a deal had been reached to end the roughly four-month war, with a signing ceremony set for June 19 in Switzerland and the U.S. naval blockade of the strait to be lifted.
Investors read the reopening of the Hormuz shipping lane as relief on oil supply, and the risk-on tone showed in the leaders: airline stocks were among Seoul's biggest gainers, with the sector up 13.2 percent.
The chip heavyweights drove the index. SK hynix climbed 7.5 percent to 2,311,000 won ($1,528.74), outpacing Samsung Electronics, up 4.7 percent at 337,500 won ($223.26).
The strength rippled through the Samsung group, with Samsung Electro-Mechanics up 13.2 percent to 1,940,000 won ($1,283.32).
Foreigners bought 346 billion won and institutions 883 billion won worth in KOSPI by mid-morning, while individuals sold 1.24 trillion won.
The won firmed, quoted at 1,511.70 to the U.S. dollar compared last closing of 1,519.8.
In Tokyo, the Nikkei rose 3,472.71 points to 69,492.75, touching an intraday high of 69,558.12, as chip exporters and the oil-relief trade lifted the market to its strongest level of the year.
Chinese gains were milder and came off their opening pops — the Shanghai Composite up 0.6 percent and the Shenzhen Component 0.8 percent — while Hong Kong's Hang Seng outpaced the mainland, up 1.2 percent.
A Iran deal is not yet signed — officials say some issues remain for negotiation over the next 60 days, and Iran has urged caution — leaving a gap between Monday's relief and a settled peace.
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