South Korea Kospi Hits Record High as Asian Markets Trade Mixed on Iran Peace Hopes

South Korea’s benchmark Kospi index surged to a fresh record high on Tuesday, leading gains across Asian markets as trading resumed after a public holiday. Investor confidence was lifted by renewed hopes of diplomatic progress in U.S.–Iran relations, helping Seoul’s market outperform regional peers despite a generally mixed trading session across Asia.

Sentiment across global markets was largely shaped by developments in the Middle East, where U.S. President Donald Trump said negotiations with Iran were “proceeding nicely,” while also warning that military action could resume if talks fail. The uncertain but cautiously optimistic tone helped support risk assets, even as tensions remained in the background.

Oil markets reflected that instability, moving in opposite directions. Brent crude climbed, while U.S. West Texas Intermediate (WTI) slipped sharply amid thin holiday trading conditions in the United States. Meanwhile, military activity reports and comments from former CIA Director David Petraeus added to concerns about rising geopolitical pressure around the Strait of Hormuz.

Elsewhere in Asia, Japan’s Nikkei 225 cooled slightly after recently crossing the 65,000 mark, as investors locked in profits. Australia’s ASX 200 and India’s Nifty 50 also ended lower, while China’s CSI 300 posted modest gains and Hong Kong’s Hang Seng remained largely flat, highlighting the uneven direction of regional markets.

By the close of trading, South Korea’s Kospi had risen about 2.55% to finish near 8,047 points, after briefly touching an all-time intraday high. Analysts say the rally reflects strong investor appetite for tech-driven growth sectors, particularly semiconductors, even as global markets continue to react sharply to geopolitical uncertainty.

source: cnbc