Japanese and South Korean stock markets hit new highs again; South Korea’s stock index surged 5% triggering a circuit breaker, SK Hynix’s market value surpassed one trillion.

Japanese and South Korean stock markets hit new highs again; South Korea’s stock index surged 5% triggering a circuit breaker, SK Hynix’s market value surpassed one trillion.

Optimism over the US-Iran agreement boosts global risk assets, with all Asia-Pacific stock markets rising on Wednesday. Both Japan and South Korea's benchmark indexes hit new historical highs, continuing the strong momentum seen overnight in US stocks.

South Korea’s Seoul Composite Index (KOSPI) surged as much as 5% during the day, reaching a new all-time high and again triggering a circuit breaker—the Korea Exchange suspended program trading for 5 minutes because KOSPI 200 futures rose 5%. The Nikkei 225’s gains also expanded to 2%, again hitting a historic high. The MSCI Asia-Pacific Index rose about 1% overall.

Expectations of progress in US-Iran ceasefire negotiations continue to boost market sentiment. US President Trump said talks with Iran are "going smoothly", and according to CCTV News, Rubio said negotiations on the wording of the US-Iran agreement “might take a few more days”.

Boosted by this, US stocks surged overnight, with the S&P 500 and Nasdaq Composite both closing at record highs. Chip stocks led the gains, with Micron Technology soaring 19% in a single day and its market capitalization exceeding $1 trillion.

Tech Stocks Lead Gains, SK Hynix Market Cap Surpasses $1 Trillion

South Korea’s stock market was the highlight of this round of Asia-Pacific gains.

As a bellwether for AI investment, South Korea’s market was strongly driven by the tech sector. SK Hynix’s share price surged as much as 11% in a single day, its market cap breaking through the $1 trillion threshold and joining the global trillion-dollar club.

This trend corresponds closely to the overnight US chip stock rally. Micron Technology’s strong performance pushed the Nasdaq 100 index up 1.8%, also closing at a record high, with tech stocks’ spillover effects on global markets being significant.

In Japan, the Nikkei 225 rose about 2%, the Topix Index was up 0.57%, and Australia’s S&P/ASX 200 index gained slightly by 0.13%.

Uncertainties Remain in US-Iran Situation, Market Bets on Peace

Although market sentiment leans optimistic, the actual direction of the Middle East situation remains highly uncertain. US Central Command on Tuesday conducted "self-defense" strikes on Iranian missile launch sites and vessels suspected of laying mines in southern Iran, and both sides continue to test boundaries under the ceasefire framework. The security situation in the Strait of Hormuz remains fragile.

As a result, participants’ attitudes are diverging. Kyle Rodda from Capital.com stated, "Market participants are betting on peace and using this to buy fundamentally strong stocks." Ian Lyngen from BMO Capital Markets took a cautious stance, saying, "Although we want to share in the market’s optimism, there have already been enough setbacks in Washington’s negotiations with Tehran. Until we see more concrete progress, we will remain cautious."

Brent crude eased slightly to $99.20 per barrel, the dollar index edged down 0.1%, and US Treasury yields fell as inflation concerns eased, with the market scaling back bets on a near-term Fed rate hike.

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