Asian Markets Open Higher, South Korea Surges 2.4% Amid US-Iran Tensions

GeopoliticsMacro Impact 4
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Asian stock markets opened higher this morning, with South Korea's Kospi index surging 2.4% to 6,963.35 points and Japan's Nikkei index rising 0.5% to 66,421.01 points, boosted by electronics and metals stocks. Investors are monitoring the conflict between the United States and Iran. The Houthi rebel group in Yemen claimed to have attacked two Saudi oil tankers in the Red Sea with missiles and drones. US President Donald Trump warned via Truth Social that if Iran attacks ships in the Strait of Hormuz, the US will retaliate by destroying an Iranian bridge or power plant each time. Meanwhile, Malaysia expressed deep concern over threats that could affect navigation through the Bab el-Mandeb Strait, a key strategic shipping route connecting Asia and Europe. On another front, Senior General Min Aung Hlaing, President of Myanmar, is scheduled to make an official visit to Thailand from August 3 to 4, during which Thailand plans to raise the issue of toxic substances in the Kok River. The Philippines lodged a strong protest with China over a confrontation in the South China Sea during talks between the foreign ministers of both countries in Manila. Meanwhile, Indonesia's central bank decided to hold its policy rate at 5.75%, along with the deposit rate at 4.75% and the lending rate at 6.50%, to defend the rupiah and support economic growth.

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