Hopes for Hormuz Strait Reopening... Could It Bring Optimism to a Stagnant Stock Market?

KOSPI Fell After Trump's Hardline Remarks the Previous Day
Rebounded on Hopes for Hormuz Strait Reopening
War Uncertainty Persists... Volatility Expected to Continue for Now

On April 3, the KOSPI index rebounded by more than 3% in early trading on expectations of Hormuz Strait transit. The electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul shows the domestic stock market index. 2026.4.3 Photo by Kang Jinhyung

After U.S. President Donald Trump made hardline remarks toward Iran the previous day, the South Korean stock market, which had declined, managed to rebound on hopes of the reopening of the Hormuz Strait. However, experts are warning investors to be cautious of volatility, as President Trump's statements regarding a potential war in the Middle East continue to cause turbulence in the market.

Stock Market Rebounds on Expectations of Hormuz Strait Reopening

As of 9:36 a.m. on April 3, the KOSPI was trading at 5,372.30, up 2.64% from the previous trading day. At the same time, the KOSDAQ was up 1.04% at 1,067.30. The won-dollar exchange rate started the session 8.9 won lower at 1,510.8 won and had fallen to the 1,506 won range as of 9:44 a.m.

Most of the top market capitalization stocks were up. As of 9:40 a.m., Samsung Electronics was trading at 183,500 won, up 3.03% from the previous session. SK hynix was up 4.58% at 869,000 won. Hyundai Motor (up 1.72%), SK Square (up 1.49%), and Doosan Enerbility (up 2.24%) were also on the rise.

The South Korean stock market was also influenced by the New York Stock Exchange, which reversed its earlier losses and closed higher overnight. On April 2 (local time), the Dow Jones Industrial Average fell by 0.13% from the previous close, but the Nasdaq Composite Index rose by 0.18%. The Philadelphia Semiconductor Index also gained 0.40%.

War Uncertainty Remains High... Volatility Expected to Persist for Now

President Trump said in a national address the previous day, "Over the next two to three weeks, we will deliver an extremely powerful blow to Iran," and threatened, "We will send them back to the Stone Age." President Trump's remarks, which contradicted the market's hopes for a possible ceasefire or end to the war, triggered a sharp decline in the South Korean stock market and a weak opening in New York. However, news that Iran and Oman are preparing a draft protocol to regulate regular navigation through the Hormuz Strait led to a rapid reduction in the market's losses.

Suh Sangyoung, a researcher at Mirae Asset Securities, commented, "The U.S. stock market opened lower on concerns that, due to President Trump's statements, the Iran conflict may not end soon but rather be prolonged. However, as bargain-hunting sentiment emerged and the news broke that Iran is working with Oman on an agreement regarding Hormuz Strait navigation, the market turned upward."

With ongoing concerns about war and the burden of high oil prices, the South Korean stock market is expected to remain highly volatile for the time being. Han Ji-young, a researcher at Kiwoom Securities, analyzed, "President Trump's national address triggered a mix of concerns about a protracted war and hopes that the conflict might end soon, leading to a split in market expectations. Market participants are also experiencing increasing fatigue."

This content was produced with the assistance of AI translation services.