South Korea's Kospi clocks best month in 28 years as tech optimism triumphs over Iran war worries

A man passes an electronic quotation board displaying the Nikkei 225 stock prices on the Tokyo Stock Exchange in Tokyo on March 31, 2026. (Photo by Kazuhiro NOGI / AFP via ) Kazuhiro Nogi | Afp | South Korea's benchmark Kospi index logged its strongest monthly gain, up nearly 31%, since January 1998, powered by a surge in tech stocks that has helped the market shrug off escalating geopolitical tensions in the Middle East. The index's outsized gains have been driven largely by optimism around the artificial intelligence boom, with semiconductor giants and heavyweights SK Hynix and Samsung Electronics leading the charge, up 60% and 35%, respectively on month. HSBC last week upgraded South Korea to "neutral" from "underweight," saying recent foreign outflows have helped unwind crowded positioning in the market and reduced downside risks from geopolitical volatility. Beyond the heavyweight chipmakers, HSBC said broader growth themes in areas such as energy storage, shipbuilding, defense and nuclear power are also supporting the market's rally. The milestone rally comes as the broader Asia-Pacific markets, including the Kospi, declined Thursday, pressured by a spike in oil prices that hit 4-year highs, before paring gains, on fears of potential U.S. military action against Iran and lingering uncertainty after the Federal Reserve held rates steady. The Kospi fell 1.38% to 6,598.8, while the small-cap Kosdaq lost 2.29% to 1,192.35. …