Korean stocks emerged as the top gainers in Asia after de-escalation in the Middle East

South Korean equities led gains in Asia-Pacific stock markets after U.S. President Donald Trump announced that Israel and Iran had agreed to a cease-fire. Investors withdrew from securities in defensive sectors - such as defense and energy - in favor of riskier assets, especially in the technology sector.

South Korea's KOSPI stock index rose nearly 3% on June 24 after losses in the previous session and hit its highest since 2021. Among the index's heavyweights, memory chip maker SK Hynix jumped nearly 8%, its rival Samsung Electronics added nearly 4%, and electric car battery maker LG Energy Solution rose more than 2%.

The region's stock markets as a whole showed the fastest growth since early May thanks to increased demand for risky assets. The sharp reversal in market dynamics came after several days of tension caused by the escalating conflict in the Middle East. Investors switched from stocks in defensive sectors - such as defense and oil - to growth stocks, wrote Bloomberg. Shares of Taiwan's TSMC, the world's largest contract chip maker, rose 3 percent.

«While it's certainly too early to definitively write off tensions in the Middle East, traders are likely to allow themselves a deep - albeit cautious - respite today to enjoy the rainbow after days of geopolitical storm,» quoted by Bloomberg market analyst Hebe Chen of Vantage Markets. That change in sentiment could trigger a reallocation of capital from defensive sectors to technology and growth stocks, which «could benefit as risk appetite strengthens under a timid ray of peace,» she said.

- Shares of chip makers in Asia rose as geopolitical tensions eased.
- Defense companies fell after news of a truce.
- Energy sector sagged following a drop in oil prices.
- Shares of Municipal companies rose: the market hopes that oil supplies will not be disrupted.
- Airline companies recovered the losses incurred the day before due to lower fuel prices.

This article was AI-translated and verified by a human editor