Shares of major semiconductor stocks are rallying in pre-market trading on news of easing tensions between the United States and Iran.
As of 8:18 a.m. on the 8th, Samsung Electronics (005930.KS) was trading at 205,500 won in pre-market, up 4.58% from the previous session, while SK hynix (000660.KS) was trading at 971,000 won, up 6%.
The sharp gains are attributed to expectations of easing tensions in the Middle East. U.S. President Donald Trump said on the 7th (local time) that he agreed to halt military action for two weeks on the condition that Iran opens the Strait of Hormuz.
Trump posted on social media platform Truth Social at 6:32 p.m. that day, "I agree to a two-week halt to the bombing and attacks on Iran, contingent on Iran agreeing to a full, immediate and safe opening of the Strait of Hormuz." He emphasized that the measure amounts to a de facto ceasefire applying to both sides.
According to Reuters, the Iranian side said it will hold negotiations with the United States in Islamabad, Pakistan on the 10th.
U.S. stock markets overnight pared losses despite geopolitical risks stemming from the Middle East, closing mixed. The Dow Jones index fell 0.2%, while the S&P 500 and Nasdaq each rose 0.1%.
Among individual stocks, semiconductor shares were broadly firm, including Nvidia (+0.3%), Broadcom (+6.2%), and Micron (-0.1%). Broadcom surged on news of a long-term TPU contract with Alphabet.
"With the full-fledged earnings season now underway following Samsung Electronics' earnings surprise, corporate profit momentum rather than war-related variables will determine market direction," said Han Ji-young, a researcher at Kiwoom Securities. "There is a possibility that the upward trend in earnings consensus revisions will continue, centered on the semiconductor sector."
