South Korea’s KOSPI stock market index has risen by 8.46% as of writing, the largest in the index’s history. The surge comes days after the KOSPI experienced a 8% dip, which caused trading to be suspended for nearly 20 minutes due to a circuit breaker. The dip is attributed to increased profit taking and sell offs in the semiconductor sector. Let’s discuss why the index is up today and if it is finally out of its slump.

Why Is South Korea’s KOSPI Stock Market Index Up Today?

The KOSPI is not the only index to have surged on Friday, June 12, 2026. Japan’s Nikkei 225 has risen by 3.5%. The Indian Sensex and Hong Kong’s Hang Seng are also following a similar trend.

The Asian stock market rally comes after President Trump announced a deal to end the US-Iran conflict. President Trump added that the dal will lead to an immediate reopening of the Strait Of Hormuz, which may cool off global crude oil prices. The announcement has likely led to an elevation of investor sentiment, triggering increased market activity.

Will The Rally Last?

The semiconductor sector seems to have recouped its losses from the sell off earlier this week. The stock market sell off came after increased tensions in the Middle East and higher than anticipated inflation numbers in the US. Japan is expected to raise interest rates to 1%, the highest in 31 years. The US is also expected to keep rates higher for longer to combat rising CPI (Consumer Price Index) numbers.

Also Read: CPI Inflation Surges to 4.2% in May: Highest level since 2023

Many also attribute the stock market dip to the upcoming IPOs of SpaceX, Anthropic, and OpenAI. SpaceX is set to go public later today with a valuation of nearly $2 trillion. The AI IPOs may drain some liquidity from the stock market, which may stir prices.