Seoul’s benchmark Kospi index extended its gains late Wednesday morning, driven by a broadening wave of investor optimism.
The rally was fueled by emerging hopes for an interim agreement between the United States and Iran, which markets view as a potential catalyst for de-escalating tensions in the strategically vital Strait of Hormuz.
The positive sentiment in Seoul followed a session on Tuesday where bargain hunting in the technology sector helped offset lingering concerns over geopolitical instability.
Investors appear to be rotating into risk assets as the prospect of stabilized shipping routes reduces the premium on energy and logistics costs.
This shift suggests that the market is beginning to price in a lower probability of severe supply chain disruptions in the near term.
The development aligns with broader global market trends, where oil prices have softened for a third consecutive day amid signals from Qatar regarding an interim proposal for the Hormuz corridor.