Asian technology stocks and semiconductor firms posted strong gains on Monday following reports that Washington and Tehran had agreed to an interim framework to end hostilities and reopen the Strait of Hormuz. Market participants responded with a broad risk-on shift that buoyed growth sectors which had been pressured in recent weeks by higher inflation expectations.
In South Korea, the country's largest memory and semiconductor groups saw notable advances: Samsung Electronics (KS:005930) and SK Hynix (KS:000660) both registered jumps in the mid-single-digit to high-single-digit range, between 5% and 7%.
Japan's benchmark Nikkei 225 climbed more than 5% to reach a record high, with major technology investors and suppliers rallying. SoftBank Group (TYO:9984) shares surged by over 10%, while Tokyo Electron (TYO:8035) gained about 8%.
Across Greater China, chip-related names also made significant moves. Semiconductor Manufacturing International Corp (HK:0981) shares rose roughly 7%, and Hua Hong Semiconductor (HK:1347) increased by nearly 10%. Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330), listed in Taipei, added approximately 3%.
The market reaction followed a decline in Brent crude of about 4% after reports that the Strait of Hormuz would be reopened under the interim agreement. Lower oil prices helped alleviate some investor concern that rising energy costs would push inflation higher and force interest rates to remain elevated for a longer period.
Investors rotated back into growth-focused segments, with technology issues—particularly those linked to artificial intelligence—among the strongest performers across the region. The combination of reduced energy-price risk and the peace framework translated into a pronounced preference for equities exposed to secular growth themes.
Market context and sector implications
The rally was concentrated in technology and semiconductor sectors. The moves in heavyweight chipmaking stocks in South Korea, major technology investors and equipment suppliers in Japan, and foundry and packaging names across Greater China underlined the market's sensitivity to geopolitical developments that affect energy prices and inflation expectations.