A man walks past an electronic trading board displaying Nikkei 225 stock prices at the Tokyo Stock Exchange in Tokyo on March 31, 2026. (Photo by Kazuhiro NOGI/AFP via Getty Images)
Kazuhiro Nogi | Afp | Getty Images
The South Korean reference Kospi Index posted its biggest monthly gain, up nearly 31%, since January 1998, fueled by a rise in technology stocks that helped the market cope with escalating geopolitical tensions in the Middle East.
The index’s outsized gains were largely driven by optimism over the artificial intelligence boom, with semiconductor giants and heavyweights SK Hynix and Samsung Electronics leading the way, up 60% and 35% respectively for the month.
HSBC upgraded South Korea to “neutral” from “underweight” last week, saying recent foreign capital outflows helped unwind the saturated position in the market and reduce downside risks from geopolitical volatility.
Beyond the big chipmakers, HSBC said broader growth themes in areas such as energy storage, shipbuilding, defense and nuclear power are also supporting the market recovery.
The sharp rebound comes as broader Asia-Pacific markets, including the Kospi, fell on Thursday, pressured by a surge in oil prices to a 4-year high, before paring gains, due to fears of possible US military action against Iran and lingering uncertainty after the Federal Reserve kept rates steady.
The Kospi fell 1.38% to 6,598.8, while the small-cap Kosdaq lost 2.29% to 1,192.35.
In Australia, the S&P/ASX200 lost 0.24% to end the trading day at 8,665.8.
Japanese markets fell as trading resumed after a holiday. The reference Nikkei 225 lost 1.06% to close at 59,284.92 while the Topix fell 1.19% to 3,727.21.
that of Hong Kong Hang Seng Index was down 0.36%, while the CSI 300 added 0.21%.
Oil rose after Axiosciting two sources familiar with the matter, reported that the US Central Command was set to present plans for possible military action against Iran to US President Donald Trump.
Trump had already would have been rejected Tehran’s proposal to reopen the Strait of Hormuz, signaling the naval blockade, will remain in effect until a broader nuclear deal is reached.
June futures for international reference Brent Crude rose 3.4% to $121.98 a barrel on Thursday, while U.S. West Texas Intermediate added 1.21% to $108.22.
Brent crude has reached its highest levels since mid-2022, LSEG data shows, as conflict in the Middle East chokes supplies.
In the United States, futures contracts linked to S&P500 added 0.3%, while Nasdaq 100 Futures gained 0.5%. Dow Jones Industrial Average Futures fell 128 points, or 0.2%.
Overnight in the United States, the Dow Jones Industrial Average closed at the bottom. The 30-share index fell 280.12 points, or 0.57%, to close at 48,861.81 and record a fifth straight day of loss. THE S&P500 edged down 0.04% to close at 7,135.95, while the Nasdaq Composite rose 0.04% to 24,673.24.
— CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.