Japan, South Korea Stocks Rebound After Lower Open, KOSPI Index Reverses Higher, SK Hynix Rises Over 4%

TradingKey - During the Asian early session on June 11, Japanese and South Korean stocks rebounded after opening sharply lower. As of press time, the KOSPI stood at 7,673.71 points, while the Nikkei 225 also bounced back, with its decline narrowing to 0.88%.

In the Tokyo market, the Nikkei 225 index opened 1.32% lower at 63,329.17 points. It fell nearly 2% during early trading, briefly dropping below the 63,000 psychological level, before losses narrowed amid a slight rebound. Technology stocks and the automotive sector showed signs of recovery.

[Source: TradingView]

South Korea's KOSPI index opened 2.9% lower at 7,509.62 points, with intraday losses widening beyond 4% at one point to hit a low of 7,412.30. It subsequently staged a volatile recovery to regain lost ground, briefly reclaiming the 7,800 level during the session.

Heavyweights such as Samsung Electronics and SK Hynix both opened lower in the morning session but later rebounded. As of press time, SK Hynix jumped more than 4%, while Samsung Electronics edged up 0.8%, effectively erasing earlier losses.

[Source: TradingView]

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

In overseas markets, U.S. stocks tumbled across the board overnight, with the Dow falling 1.87%, the Nasdaq dropping 1.98%, and the S&P 500 down 1.62%. U.S. CPI rose 4.2% year-on-year in May, a three-year high, fueling concerns that the Federal Reserve will maintain its tightening policy. However, U.S. stock futures rebounded slightly during the Asian session today, somewhat soothing sentiment in Asia-Pacific markets.

Regarding geopolitics, the Iranian Armed Forces announced in the early hours of June 11 that the Strait of Hormuz would be closed to all vessels, warning that any unauthorized passage would be targeted. Meanwhile, the U.S. military launched a new round of strikes on multiple targets within Iran as tensions continued to escalate. International oil prices rose due to the strait's closure, with WTI crude oil futures climbing to $93.44 per barrel.

In the South Korean foreign exchange market, the KRW/USD opened at 1,525.5, down slightly by 1.3 won from the previous trading day, remaining largely stable. Analysts cautioned that despite the bounce, the KOSPI is still down over 6% over the past five sessions, indicating that market confidence has not fully recovered. With the U.S.-Iran conflict escalating and high oil prices pressuring South Korea's import costs, short-term volatility risks for Japanese and South Korean stocks remain elevated. Investors should monitor geopolitical developments and upcoming U.S. PPI data.