Japanese and Korean stock markets surged at the opening on June 12, following a sharp rally in U.S. equity indices overnight on June 11. The gains followed U.S. President Trump's social media announcement on June 11 canceling planned strikes against Iran, citing negotiations submitted to Iran's supreme leadership. The move reduced geopolitical risk premiums and boosted investor sentiment across global markets.
Korea KOSPI Index Surges 7% After Opening
The Korea Composite Stock Price Index (KOSPI) opened at 8263.85 points, up 6.4%. The index rapidly expanded gains to 7%. Samsung Electronics rose over 9%, while SK Hynix climbed more than 8%. The Korea Exchange activated the KOSPI circuit breaker mechanism after the KOSPI 200 index futures rose 5%, suspending program trading for 5 minutes.
Japan Nikkei 225 Index Rises Over 4%
The Nikkei 225 index opened at 65176.23 points, up 1.49%. The index quickly expanded gains to over 4%, touching above 66800 points.
U.S. Stock Indices Rally Overnight on June 11
Overnight U.S. stock indices posted broad gains. The Dow Jones Industrial Average rose 1.86% to 50848.75 points. The S&P 500 index climbed 1.75% to 7394.3 points. The Nasdaq Composite surged 2.54% to 25809.66 points. Major technology stocks advanced, with semiconductor stocks posting collective gains. The Philadelphia Semiconductor Index closed up 7.9%, marking its largest gain since April 2025. SanDisk rose over 14%, Micron Technology, Applied Materials, and ARM climbed over 11%, ASML and Intel gained over 9%, AMD advanced over 7%, Western Digital rose 8%, and Seagate Technology and Qualcomm increased over 6%.
Trump Cancels Iran Strikes on June 11
According to CCTV News, U.S. President Trump posted on social media on June 11 that he canceled planned "fierce strikes" against Iran scheduled for that evening. Trump stated that negotiations with Iran had been submitted to Iran's supreme leadership and received approval. Iran and Israel both stated on June 11 that no so-called "U.S.-Iran agreement" had been finalized. Attacks on vessels in the Strait of Hormuz continued to occur, with parties holding differing views on strait passage conditions.
Capital.com senior financial markets analyst Kyle Rodda stated that this clear signal indicated Trump "almost has no willingness" to escalate war, causing oil prices to fall and providing new support for risk assets. Ulrike Hoffmann-Burchardi of UBS Chief Investment Office stated: "Although the path to resolution may not be smooth, our baseline expectation is that diplomacy will ultimately prevail, allowing investors to refocus on economic fundamentals and corporate earnings growth."
According to Xinhua News Agency, U.S. President Trump told media at the White House on June 11 that he believed Iran's supreme leader had approved the U.S.-Iran agreement, describing the related agreement as a "very strong memorandum of understanding."
Xinhua News Agency cited Iran's Fars News Agency reporting on the evening of June 11 that a source close to Iran's negotiating team stated Iran had not approved the Iran-U.S. memorandum of understanding text, and U.S. President Trump's earlier statement was not accurate.
U.S. May PPI Data Exceeds Expectations
The U.S. Bureau of Labor Statistics reported on Thursday that the May Producer Price Index (PPI) rose 1.1%, exceeding the 0.7% expectation from economists surveyed by Dow Jones. Core inflation, excluding volatile food and energy prices, was 0.4%, below the 0.5% Dow Jones forecast.
FAQ
What caused Japanese and Korean stock markets to surge on June 12?
Japanese and Korean stock markets surged at the opening on June 12 following a sharp rally in U.S. equity indices overnight on June 11. The gains followed U.S. President Trump's social media announcement on June 11 canceling planned strikes against Iran, which reduced geopolitical risk premiums and boosted investor sentiment.
How much did the Korea KOSPI index rise on June 12?
The Korea KOSPI index opened at 8263.85 points, up 6.4%, and rapidly expanded gains to 7%. The Korea Exchange activated the circuit breaker mechanism after the KOSPI 200 index futures rose 5%, suspending program trading for 5 minutes.
What did U.S. President Trump announce on June 11 regarding Iran?
U.S. President Trump posted on social media on June 11 that he canceled planned "fierce strikes" against Iran scheduled for that evening. Trump stated that negotiations with Iran had been submitted to Iran's supreme leadership and received approval. Iran and Israel both stated on June 11 that no so-called "U.S.-Iran agreement" had been finalized.
