Kospi Jumps Nearly 10% as Iran Tensions Ease, SpaceX Demand

Seoul — South Korea’s Kospi Composite Index climbed almost 10% on June 12, rising to 8,430 and moving closer to its all-time high of 8,925. The advance followed a rapid de‑escalation in tensions between the United States and Iran and heavy demand ahead of the SpaceX initial public offering.

Global equity gauges moved higher alongside the Kospi. The Dow Jones Industrial Average, Nasdaq 100 and S&P 500 each gained more than 1.75%, while Asian benchmarks including the Hang Seng, Shanghai Composite and NIFTY 50 also turned positive.

Markets reacted after U.S. President Donald Trump canceled planned strikes on Iran and said the United States and Iran were “close to a deal that will be signed in Europe as soon as this week.” Mr. Trump had earlier warned of a major assault that could target Kharg Island, a key export terminal for Iranian crude. The Strait of Hormuz, a major transit route for oil shipments, was cited repeatedly during the week as a potential flashpoint for supply disruption.

Reports of a short-term agreement aimed at reopening the Strait of Hormuz reduced immediate concern about a large near-term spike in crude oil prices that had earlier affected investor sentiment.

Investor interest in the SpaceX IPO provided additional buying pressure on technology-linked and heavyweight names. The private space company is due to list later on June 12 and has reported assets of more than $75 billion, with order interest described by market participants as multiple times that amount. Broker notes issued ahead of the listing included raised targets for the stock.

Large-cap South Korean firms recorded outsized gains. Samsung Electronics rose about 12%, SK Hynix advanced roughly 8% with its market capitalization approaching $1 trillion, and SK Square climbed about 13%. Other top performers included Hyundai Motor, Samsung Life Insurance, Samsung C&T and KB Financial.

Technical indicators showed the Kospi moving above an ascending trendline drawn from early May lows and trading above both the 50-day and 100-day exponential moving averages. The index also climbed above the Ichimoku cloud on daily charts. Traders cited the year-to-date high of 8,925 as the immediate reference point and identified 10,000 as a subsequent resistance level.

Market participants warned that further gains will hinge on whether diplomatic talks with Iran continue to hold and on execution of the SpaceX offering. Any renewed geopolitical escalation or weaker-than-expected IPO demand could alter market direction.