South Korean Stocks Surge 2% After Opposition Leader’s Stunning Presidential Win: What’s Next for Asia’s Markets?

Asia-Pacific markets saw a boost on Wednesday, riding a wave from a strong tech rally in the U.S. This was largely fueled by a significant rise in shares of Nvidia, a prominent chipmaker, which gained nearly 3%. This uptick pushed Nvidia’s market capitalization above Microsoft’s for the first time since January.

South Korean stocks led the increase, following recent political changes. Lee Jae-myung, the leader of the opposition party, won the presidential election. His vision aims to strengthen the Korean stock market, elevating the Kospi index by 2.66%. This marks its highest level since August of the previous year. The small-cap Kosdaq also saw gains, climbing 1.34%.

John Cho, a portfolio manager at J.P. Morgan, noted that Lee’s election promises revolve around improving the rights of minority shareholders and enhancing corporate governance. He believes these changes should lead to better decision-making within companies.

Looking forward, Cho anticipates significant fiscal stimulus from the new South Korean government. He expects the economy to rebound, especially in sectors like high bandwidth memory for artificial intelligence and heavy industries.

In Japan, the Nikkei 225 increased by 0.8%, while the broader Topix index rose by 0.51%. Meanwhile, mainland China’s CSI 300 index closed up by 0.43%, and the Hang Seng Index in Hong Kong mirrored this growth. In Australia, the S&P/ASX 200 index ended 0.89% higher, although their economic growth for the first quarter of 2025 came in at 1.3%, slightly below economists’ predictions.

India’s stock markets were steady, with minor upticks in their main indices.

Over in the U.S., futures remained mostly unchanged despite a favorable jobs report showing resilience in the labor market. The S&P 500 rose by 0.58%, and the Dow Jones added 214.16 points.

Morningstar economist Preston Caldwell shared insights about the economic landscape, noting that while tariffs still pose a threat, their immediate impact seems less severe now. He reduced the likelihood of a recession from previous estimates, now suggesting a 25% chance compared to earlier predictions of 35% to 40%.

This complex interplay of politics, tech advancements, and economic forecasts underscores the dynamic environment shaping global markets. Investors remain attentive to these shifts as they prepare for the future.

For a deeper dive into global markets, check authoritative sources like CNBC or Reuters.

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