Japan and South Korea Stocks Extend Rally, KOSPI Index Surges Over 3%

TradingKey - Japanese and South Korean stock markets have opened higher for two consecutive trading sessions, with the potential to continue rebounding and fill previous gaps.

During early trading on March 11 (GMT+8), Japanese and South Korean stocks extended their rally, with both indices jumping by approximately 2%. The Nikkei 225 opened up 1,028.77 points, or 1.86%, at 55,259.67. South Korea's KOSPI index rose 166.18 points, or more than 3%, to 5,699.00.

South Korea KOSPI Index Chart, Source: TradingView

On March 9 local time, U.S. President Trump announced that the war was basically over. This news boosted a rally in risk assets, and Japanese and South Korean stocks opened higher and moved upward, reversing the downtrend seen since the start of the U.S.-Iran conflict. Currently, both markets have recovered losses sustained since March 4 and are working to fill previous gaps.

In the early hours of March 11 local time, Iran launched the 37th round of attacks under 'Operation True Promise 4,' targeting U.S. military bases, the U.S. Fifth Fleet, and Tel Aviv, among other locations. Although Middle East tensions have not been fully resolved, Japanese and South Korean stock markets have become increasingly immune and avoided further weakness.