Kospi Jumps 2.5% as Asian Stocks Hit Record, Oil Set for Weekly Loss

For investors, the week’s market action represents a textbook easing of a geopolitical risk premium. The Strait of Hormuz closure had introduced a stagflationary tail risk that threatened to upend consensus trades on a soft economic landing. Its resolution and the subsequent collapse in oil prices directly lower input costs across industries, from transportation to manufacturing, and critically, give central banks breathing room to hold rather than hike. This dynamic is now pulling capital back into growth-sensitive Asian equities, with the Kospi's surge serving as the clearest barometer of improving macro sentiment and resurgent tech investment themes.

Asian equities extended their rally to a record peak on Friday, fueled by a powerful confluence of easing geopolitical risk and a resurgent technology sector. The catalyst was the reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments, which sent crude prices tumbling and dramatically altered the near-term outlook for inflation and monetary policy. The MSCI Asia Pacific Index rose 0.1% to an all-time high, marking its sixth consecutive day of gains, with South Korea’s Kospi outperforming with a surge of more than 2.5%. The gains were concentrated in semiconductor and technology shares, mirroring a strong session on Wall Street where the Nasdaq 100 jumped 2.5% and a gauge of chip stocks soared over 6% to a record, led by Intel Corp. President Donald Trump's announcement that Intel would collaborate with Apple Inc. to design and manufacture advanced semiconductors in the United States provided a powerful narrative for the tech rally, reinforcing themes of strategic industrial policy and supply chain localization.

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The MSCI Asia Pacific Index rose 0.1% to an all-time high, marking its sixth consecutive day of gains, with South Korea’s Kospi outperforming with a surge of more than 2.5%.

The sharp drop in oil prices is the story’s undercurrent. Crude was on pace for a substantial weekly loss after the Hormuz reopening restored normal tanker traffic, alleviating fears of a supply shock that had threatened to reignite global inflationary pressures. This immediate relief recalibrated expectations for central banks. The Bank of England, for instance, had already cited the encouraging drop in oil prices as a factor in its decision to hold interest rates steady overnight. For investors, the swift resolution of the Strait of Hormuz crisis removes a key tail risk that could have forced hawkish pivots from the Federal Reserve and other major central banks. The implied probability of a near-term rate cut, or at least an extended pause, has increased, lowering the discount rate applied to future corporate earnings and pushing equity valuations higher.