South Korea’s KOSPI surged past the 6,000-point threshold on April 15 for the first time since the outbreak of the U.S.-Iran conflict, as renewed hopes for diplomatic resolution and a decisive shift by foreign investors fueled a broad-based rally across Asian equities.
KOSPI Breaks Above 6,000 as Foreign Buyers Return
The benchmark KOSPI rose 123.64 points, or 2.07%, to close at 6,091.39 — its first close above 6,000 since the start of the war. Trading volume was heavy at 915.03 billion shares worth 31.37 trillion won, reflecting strong conviction behind the move.
A critical driver was the return of foreign investors, who turned net buyers for the first time in three months, signaling what analysts described as a potential inflection point after weeks of sustained selling. Finance Minister Koo Yun-cheol reinforced the positive narrative by meeting with global investment banks and emphasizing South Korea’s openness to international investment.
Semiconductor stocks led the charge. SK Hynix rallied 2.99% to ₩1,136,000, while Samsung Electronics added 2.18% to close at ₩211,000. Platform and tech names also outperformed, with NAVER surging 4.71% and Kakao climbing 3.12%. Hyundai Motor and LG Chem posted gains of 3.36% and 3.66% respectively, reflecting broad sectoral strength across autos, chemicals, and technology.
The Korean won also strengthened against the U.S. dollar, supported by renewed optimism over potential U.S.-Iran negotiations.
Japan Extends Gains; Taiwan Hits New Record
Japan’s Nikkei 225 added 0.44% to close at 58,134.24, a modest follow-through after Monday’s 2.43% surge. The index is now approaching its pre-conflict all-time highs, with the TOPIX also gaining 0.40% to 3,770.33. Concerns about rising bond yields and a potential Bank of Japan rate hike at the April 28 meeting capped further upside.
Taiwan’s TAIEX was another standout, jumping 1.17% to 36,722.14 — a new closing record. Semiconductor heavyweights continued to attract buying interest as global chip demand remained strong.
Hong Kong’s Hang Seng Index edged up 0.29% to 25,947.32, with tech and financial shares providing support. India’s BSE Sensex staged a strong comeback, rallying 1.64% to 78,111.24 after the previous session’s decline.
China: A Cautious Outlier
Mainland Chinese markets diverged from the regional trend. The Shanghai Composite was essentially flat at 4,027.21, while the Shenzhen Component fell 0.97% to 14,498.46 and the CSI 300 declined 0.34% to 4,685.25. The ChiNext board dropped 1.22%.
The underperformance came after data showed China’s month-on-month export growth slowed sharply to 2.5% in March from 40% in February, with the trade surplus shrinking to its smallest in a year amid surging energy import costs. Additionally, Evergrande founder Hui Ka Yan pleading guilty to fraud in Shenzhen renewed concerns about the lingering property sector overhang.
Diplomacy Hopes Drive Sentiment
The driving force behind the rally remains growing market confidence that the U.S.-Iran conflict will end at the negotiating table. After peace talks in Islamabad fell apart over the weekend, both sides signaled willingness to return. Trump stated that Iran had reached out to the White House to resume talks.
“Investors are beginning to price in a president who is now cornered,” said Gary Dugan, CEO of The Global CIO Office, noting that the political and diplomatic costs of the Hormuz blockade are “accumulating faster than anticipated.” Markets have increasingly embraced the so-called “TACO” trade — “Trump Always Chickens Out” — betting that escalation is politically unsustainable.
Oil prices continued to ease from recent highs, further supporting risk appetite. U.S. inflation data for March showed consumer prices rising 3.3% year-on-year — the fastest pace in nearly two years — but markets appeared willing to look through near-term price pressures in favor of the diplomatic narrative. The VIX fell 4.29% to 18.30, reflecting declining fear across global markets.
What to Watch Next
- U.S.-Iran diplomacy: Any concrete signals of a new round of talks — or breakdown — will immediately reset market direction.
- Oil prices: The Hormuz blockade remains in effect. Further easing in crude would reinforce the rally; a spike would quickly reverse it.
- Bank of Japan meeting (April 28): With Japanese bond yields at a 29-year high, expectations for a rate hike are building.
- Foreign investor flows in Korea: Whether the shift to net buying sustains will be key. Korean brokerages are already projecting KOSPI 7,500 as the next target.
- China demand signals: Weak export data and monetary figures suggest underlying demand remains fragile despite headline recovery.
Track Asian market indices including KOSPI, Nikkei 225, and CSI 300 in real time on ECONPLEX’s Indicators page.