Japan, South Korea Stocks Open Lower and Rebound, Kospi Index Reverses Higher, SK Hynix Gains Over 4%

TradingKey - During the early Asian session on June 11, Japanese and South Korean stock markets both fluctuated upward after opening sharply lower. As of press time, South Korea's KOSPI index stood at 7,673.71 points, while the Nikkei 225 index rebounded in tandem, with its decline narrowing to 0.88%.

In the Tokyo market, the Nikkei 225 index opened 1.32% lower at 63,329.17 points, falling nearly 2% and breaking below the 63,000-point mark in early trading before paring losses and rebounding slightly as technology and automotive sectors recovered.

[Source: TradingView]

South Korea's KOSPI index opened down 2.9% at 7,509.62 points, with intraday losses widening to over 4% at one point, hitting a low of 7,412.30 points; it subsequently fluctuated higher to recoup losses, briefly topping the 7,800-point mark during the session.

Heavyweights such as Samsung Electronics and SK Hynix both opened lower in the morning before rebounding. As of press time, SK Hynix rose over 4% and Samsung Electronics edged up 0.8%, with overall losses largely recovered.

[Source: TradingView]

On the macro front, South Korean export data remained strong. According to data from the Korea Customs Service on June 11, exports in the first 10 days of June surged 85.9% year-on-year to $28.6 billion, a record high for the same period. Semiconductor exports jumped 205.8% year-on-year to approximately $11.1 billion, accounting for 38.7% of total exports.

In overseas markets, U.S. stocks fell sharply across the board overnight, with the Dow dropping 1.87%, the Nasdaq sliding 1.98%, and the S&P 500 declining 1.62%. The U.S. CPI rose 4.2% year-on-year in May, a three-year high, sparking concerns that the Federal Reserve will maintain its tightening policy. However, U.S. stock futures rebounded slightly during the Asian session today, providing some relief to market sentiment in the Asia-Pacific.

Regarding geopolitics, the Iranian Armed Forces announced in the early hours of June 11 that the Strait of Hormuz is closed to all vessels, and any unauthorized transit will be targeted. Meanwhile, the U.S. military launched a new round of strikes against several targets in Iran, as tensions between the two nations continue to escalate. International oil prices rose due to the closure, with WTI crude futures climbing to $93.44 per barrel.

In the South Korean foreign exchange market, the won opened at 1,525.5 against the U.S. dollar, down 1.3 won from the previous trading day, remaining largely stable. Analysts cautioned that the KOSPI has still fallen over 6% in the last five days, indicating that market confidence has not yet fully recovered; with the U.S.-Iran conflict escalating, high international oil prices will pressure South Korea's import costs, keeping short-term volatility risks high for Japanese and South Korean stocks. Investors should focus on the latest geopolitical developments and the upcoming U.S. PPI data.