Seoul Stocks Climb Nearly 1% as Easing Mideast Tensions and AI Hopes Lift Risk Appetite

South Korean stocks started the week on a firm footing, with the benchmark KOSPI index finishing Monday nearly 1% higher than the previous close. Investors rotated back into risk assets as tensions in the Middle East appeared to ease, softening the global rush into safe havens and giving equities some room to rebound.

Gains were led by technology names, particularly chipmakers and electronics suppliers. Sentiment toward the sector was buoyed by the successful market debut of China’s ChangXin Memory Technologies (CXMT) on the Shanghai exchange, which reinforced the narrative of robust demand for semiconductors. Ongoing enthusiasm for artificial‑intelligence spending and reports of new collaborations between Korean tech firms and global IT giants added further support.

Strategists, however, cautioned that the backdrop remains fragile. Any renewed flare‑up in the region could push oil prices and global bond yields higher again, a negative combination for an import‑dependent economy like South Korea’s. Many local analysts framed Monday’s rally as a relief move rather than the start of a sustained uptrend, arguing that future foreign capital flows will hinge on how energy markets and US monetary policy evolve over the coming weeks.