Japan and South Korea Stocks Rebound Strongly, SoftBank Surges 16%, South Korean Stock Rally Triggers Trading Halt, Samsung Strike Suspension Is Key Catalyst

TradingKey - Major Asia-Pacific stock markets strengthened collectively during Thursday morning's session, with Japanese and South Korean markets showing a significant recovery driven by an overnight rebound in U.S. stocks.

The Nikkei 225 Index opened nearly 1% higher, with intraday gains subsequently expanding to over 3%, effectively reversing a five-session losing streak. SoftBank Group's stock performance was particularly stellar, with gains surging up to 16% at one point, marking its largest single-day increase since May 7.

South Korea's KOSPI Index opened 3.8% higher in morning trading, with gains further expanding to 5.1%. The Korea Exchange triggered the KOSPI circuit breaker mechanism after KOSPI 200 futures rose by 5%, resulting in a five-minute suspension of program trading.

Samsung Electronics, as South Korea’s leading technology stock, rose more than 5% in tandem, providing strong support for market sentiment.

Notably, the latest developments in Samsung Electronics' labor-management relations have injected positive signals into the market. According to Yonhap News Agency, just before the company's union was scheduled to launch a general strike, both sides reached a tentative agreement mediated by South Korean Minister of Employment and Labor Kim Young-hun, prompting the union to suspend the strike.

Previously, both parties were in a deadlock over issues such as performance bonus distribution, and the union had planned an 18-day strike. The reaching of this tentative agreement has temporarily eased market concerns regarding the stability of Samsung's supply chain. The union stated that all members will vote on the agreement starting from the 22nd, with the final outcome yet to be determined.

Meanwhile, as optimistic expectations for the easing of the U.S.-Iran conflict grew, the three major U.S. stock indices closed higher overnight. This significant recovery in risk appetite subsequently drove global capital back into Asian markets.