South Korea’s KOSPI Index Achieves Highest Monthly Performance in 28 Years as Tech Surge Overcomes Iran Tensions
Tech stocks drive a historic KOSPI rise, as investors overlook tensions in Iran and increasing oil prices in favor of AI-driven growth momentum.
South Korea’s benchmark KOSPI Index has achieved its most impressive monthly performance in more than twenty years, soaring nearly 31% in June—marking its largest increase since the aftermath of the 1998 Asian financial crisis—fueled by a robust rally in technology stocks and a resurgence of investor optimism surrounding artificial intelligence.
The significant increase in the Kospi has been driven by semiconductor giants SK Hynix and Samsung Electronics, which surged 60% and 35%, respectively, over the month, as global demand for AI-related chips continued to bolster optimistic sentiment.
Last week, analysts at HSBC revised South Korea’s market outlook to “neutral” from “underweight,” noting that “recent foreign outflows had helped unwind crowded positioning in the market and reduced downside risks from geopolitical volatility.”
The bank additionally observed that “broader growth themes in areas such as energy storage, shipbuilding, defense, and nuclear power are also supporting the market’s rally,” emphasizing a growing base of investor interest beyond semiconductor stocks.
Despite the significant rally, markets throughout the Asia-Pacific region experienced a decline on Thursday, as rising geopolitical tensions and increasing oil prices unsettled investor confidence. The Kospi declined by 1.38%, finishing at 6,598.8, whereas the KOSDAQ Index saw a decrease of 2.29%, closing at 1,192.35.
In Australia, the S&P/ASX 200 decreased by 0.24%, closing at 8,665.8. Meanwhile, Japan’s Nikkei 225 dropped 1.06% to 59,284.92, and the TOPIX fell by 1.19% to 3,727.21 as trading resumed following a public holiday.
In late trading, Hong Kong’s Hang Seng Index experienced a decline of 1.27%, whereas mainland China’s CSI 300 Index concluded the session mostly unchanged at 4,807.30.
Oil prices experienced a significant increase due to concerns over an escalating conflict in the Middle East, following reports that the United States Central Command was ready to offer military options regarding Iran to U.S. President Donald Trump. The report indicated that Trump had turned down Tehran’s proposal to reopen the Strait of Hormuz, signaling that a naval blockade would persist until a more comprehensive nuclear agreement is achieved.
Consequently, June futures for Brent Crude surged 3.4% to $121.98 per barrel, whereas West Texas Intermediate increased by 1.21% to $108.22. Brent crude has reached its highest level since mid-2022, as the ongoing conflict persists in disrupting global supply chains.
In the United States, futures markets displayed various signals. Contracts linked to the S&P 500 increased by 0.3%, whereas Nasdaq-100 futures advanced by 0.5%. At the same time, futures for the Dow Jones Industrial Average declined by 128 points, which is a decrease of 0.2%.
Wall Street wrapped up the day with a mixed performance. The Dow Jones Industrial Average fell by 280.12 points, or 0.57%, closing at 48,861.81, which signifies its fifth straight day of declines. The S&P 500 dipped slightly by 0.04% to finish at 7,135.95, whereas the Nasdaq Composite recorded a small increase of 0.04%, closing at 24,673.24.
