Stock markets in South Korea and Japan opened with substantial gains on Wednesday, with South Korea's KOSPI index surging more than 7%. Among the major blue-chip stocks, Samsung Electronics Co., Ltd. shares rose 10%, while SK Hynix Inc. shares advanced 9%.

Following a 5% rise in the KOSPI200 index futures, the Korea Exchange activated a circuit breaker mechanism for the KOSPI, leading to a five-minute halt in program trading.

Economic Data Fuels Optimism

The rally follows the release of strong export data by the Korea Customs Service. Preliminary figures for June 1-10 show South Korea's total exports reached $28.635 billion, a year-on-year increase of 85.9%, setting a new record for the period. Semiconductor exports were a key driver, soaring 205.8% year-on-year. Semiconductor products now account for nearly 40% of the country's total exports, a 15.1 percentage point increase from the same period last year. On the import side, semiconductor imports grew 71.3%, and imports of semiconductor manufacturing equipment rose 52.2%.

The Japanese market also opened higher and extended gains rapidly, with the Nikkei 225 index climbing more than 4%.

Geopolitical Developments Provide Support

Market sentiment was further buoyed by geopolitical news. Reports indicated that former U.S. President Donald Trump stated he had called off a planned military strike against Iran. He posted on his social media platform that, following consultations submitted to and approved by Iran's supreme leadership, he canceled the planned strikes and bombing operations scheduled for that evening.

Trump claimed the consultations and final terms, both in general concept and specific details, had been approved by all relevant parties, including the U.S., Israel, Saudi Arabia, the UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, and Egypt. He stated that maritime blockade measures would remain fully in effect until the final agreement is signed, with the time and place for the signing to be announced later.

Trump described the agreement on Iran as "excellent," noting that the documents were in the final drafting stage and could be finalized and signed within the coming days. He suggested the signing might take place in Europe, possibly over the weekend, with U.S. Vice President Vance in attendance. Trump added that the Strait of Hormuz would be opened once Iran signs the agreement. There has been no immediate response from Iran to these claims.

In a related development, Iran's state TV reported on Tuesday that a spokesperson for the Iranian Foreign Ministry stated that Iran has not yet reached a final conclusion on an agreement with the U.S., describing external reports on the matter as speculative and noting that nothing has been finalized.