KOSPI Rallies as US-Iran Ceasefire Eases Middle East Tensions

The KOSPI index continued its upward trajectory on Thursday, extending a four-day rally that has seen the benchmark gain over 11.7%, or 640 points. The index currently trades above the 5,870 level, buoyed by a sudden shift in geopolitical risk and positive momentum from Wall Street. The primary catalyst is a two-week ceasefire agreement involving the United States, Israel, and Iran. President Donald Trump stated that the suspension of attacks on Iran is contingent upon the immediate and complete reopening of the Strait of Hormuz, a critical artery for global energy shipments. Iran's Foreign Minister Abbas Araghchi confirmed the reopening would occur if attacks were halted. On Wednesday, the KOSPI skyrocketed 6.87% to finish at 5,872.34, with trading volume reaching 926 million shares. Major gains were seen across the board, led by SK Hynix (+12.77%), KEPCO (+10.03%), and LG Electronics (+8.96%), while Samsung Electronics rose 7.12%. The rally mirrored gains on Wall Street, where the Dow Jones Industrial Average surged 2.85% to 47,909.92 and the S&P 500 climbed 2.51%. Conversely, the energy sector faced a steep sell-off as supply-disruption fears vanished. West Texas Intermediate (WTI) crude for May delivery plummeted 16.07%, dropping $18.15 to settle at $94.80 per barrel.