Mideast

• South Korean stocks opened higher on Monday, July 27, driven by a positive shift in global market sentiment. • The rally follows a decision by the United States to pause military strikes on Iran over the weekend, significantly easing geopolitical tensions in the Middle East. • This stability, combined with reports of mega chip deals, has bolstered investor confidence in the region's critical semiconductor sector.

• Seoul stocks ended a three-day winning streak on Friday, with the benchmark Korea Composite Stock Price Index plummeting nearly 6 per cent. • The sharp decline was triggered by escalating tensions in the Middle East, which significantly reduced investor risk appetite. • Despite the stock market crash, the local South Korean currency rose in value against the U.S. dollar.

• Major US stock indexes, including the Dow Jones, NASDAQ, and S&P 500, fell sharply on July 23, 2026. • The decline was driven by a heavy selloff in Big Tech shares as investors questioned AI capital expenditures, coupled with a massive surge in global oil prices. • Market volatility is being fueled by geopolitical instability following the widening of attacks in the Middle East.

• The United States launched new airstrikes against Iran following Iranian attacks on ships in the Strait of Hormuz. • Tehran responded to the U.S. military action by targeting various Gulf countries, further intensifying regional instability. • President Donald Trump stated that the Iranian provocations signaled the end of a fragile ceasefire, prompting the U.S. to threaten escalation.

• Tensions in the Middle East are escalating as warring parties resume hostilities and diplomatic relations deteriorate. • Iran remains defiant, demanding that the United States take accountability for ceasefire violations involving military strikes. • President Trump's inconsistent strategy is criticized for shifting rapidly between praising Iranian diplomacy and threatening all-out military solutions.

• South Korean, Japanese, and Taiwanese stock markets experienced a sharp decline on Monday morning, driven primarily by a sell-off in technology shares. • The rout was triggered by investor fears regarding potential U.S. interest rate hikes and escalating geopolitical tensions in the Middle East. • Currency markets felt the impact as the Japanese yen and South Korean won came under significant pressure.

• South Korean shares reached a new record high on May 29, driven by a strong rally in technology stocks and growing optimism regarding stability in the Middle East. • The market surge was bolstered by investor confidence in semiconductor demand and a positive shift in geopolitical sentiment affecting global trade. • This rally underscores the resilience of Seoul's tech-heavy index and reflects a broader trend of risk-on sentiment among Asian investors.