Seoul Stocks Rise Despite Middle East Tensions as Earnings Season Takes Focus

Lead

South Korean stocks have shown resilience in recent trading sessions, closing higher even as tensions between the United States and Iran persist, with investors increasingly turning their attention to corporate earnings, according to multiple reports from Yonhap News Agency.

On Monday, April 20, the benchmark Korea Composite Stock Price Index (KOSPI) added 27.17 points, or 0.44 percent, to close at 6,219.09, after reaching as high as 6,278.36 during the session, as reported by Yonhap. The gains came despite the U.S. Navy's seizure of an Iranian-flagged cargo ship in the Gulf of Oman, which added to uncertainties surrounding U.S.-Iran peace talks.

A week later, on Tuesday, April 28, the KOSPI closed at a new record high of 6,641.02, up 25.99 points, or 0.39 percent, according to Yonhap. The index briefly topped the 6,700-point mark, rising as high as 6,712.73, before trimming gains as investors adopted a cautious stance ahead of earnings releases from major U.S. tech companies, known as the "Magnificent 7."

Coverage Comparison

All reports on these sessions came from Yonhap News Agency, South Korea's leading wire service, and were consistent in their overall narrative: stocks rose despite geopolitical concerns, driven by earnings optimism. However, the emphasis varied across reports. Some articles highlighted the market's ability to shrug off Middle East tensions, while others focused more on the anticipation surrounding Samsung Electronics' earnings guidance or the record-high close driven by U.S. tech earnings expectations.

A report from April 6 noted that stocks closed higher as investors awaited Samsung Electronics' first-quarter earnings guidance, with the KOSPI adding 73.03 points, or 1.36 percent, to 5,450.33. That report also mentioned U.S. President Donald Trump's warning of striking Iran's bridges and power plants unless Tehran opened the Strait of Hormuz, setting a deadline for Tuesday evening. Another report from April 27 indicated that stocks were trading sharply higher mid-morning, up 139.64 points, or 2.16 percent, at 6,615.27, despite uncertainties over U.S.-Iran peace talks.

Throughout these reports, the same analyst, Lee Kyoung-min from Daishin Securities, was quoted, providing continuity in the market commentary.

Key Claims

• On April 20, the KOSPI closed at 6,219.09, up 0.44 percent, with institutional investors as net buyers, according to Yonhap. Trade volume was moderate at 683.8 million shares worth 22.3 trillion won (US$15.1 billion), with losers outnumbering winners 533 to 320.

• On April 28, the KOSPI closed at a record high of 6,641.02, up 0.39 percent, with heavy trade volume of 1.1 billion shares worth 37.3 trillion won (US$25.3 billion), as reported by Yonhap. Foreign and retail investors were net sellers, while institutions purchased a net 351.5 billion won.

• Lee Kyoung-min, an analyst at Daishin Securities, was quoted across multiple reports saying that "the market is becoming less sensitive to risks stemming from the conflict in the Middle East, as similar noises are being repeated over and over during the peace negotiations." He also noted that investors are turning their eyes from geopolitical tensions to the upcoming earnings season.

• In the April 28 report, Lee described a "sectoral rotation, while semiconductors took a breather," as auto and battery shares led gains. Hyundai Motor rose 5.92 percent, and Samsung SDI jumped 7.09 percent, while Samsung Electronics declined 1.11 percent, according to Yonhap.

• A report from April 27 quoted Lee as saying that "improving business conditions and the earnings forecast of major companies, which once had been clouded by uncertainties by the Middle East, is now being reflected in the KOSPI."

• The April 6 report highlighted expectations for Samsung Electronics' first-quarter operating profit to surpass the 40 trillion-won mark for the first time, which lifted the overall index, as noted by Lee.

• In the April 20 report, SK hynix was widely expected to release its first-quarter earnings that week, following Samsung Electronics' record-breaking operating profit guidance earlier in the month, according to Yonhap.

• In the April 28 report, the Korean won fell against the U.S. dollar, and bond prices closed higher, as reported by Yonhap.

Perspectives

Analysts at Daishin Securities, as quoted by Yonhap, offered a view that the market is becoming desensitized to geopolitical risks, focusing instead on corporate fundamentals. Lee Kyoung-min's comments consistently pointed to a market that is increasingly driven by earnings expectations rather than Middle East tensions, a sentiment echoed across multiple reports.

Investor behavior, as reflected in trading patterns, showed mixed signals: on some days, foreigners and retail investors were net sellers while institutions bought, and on others, the pattern reversed. This suggests a market in transition, with sectoral rotations and a cautious but optimistic stance ahead of key earnings announcements.

The reports also imply a broader context: U.S.-Iran peace talks remain at a standstill, and the U.S. has issued threats, yet the Korean market has continued to climb. This resilience may indicate that investors have priced in the geopolitical noise and are more focused on the earnings season, which could be pivotal for market direction in the coming weeks.