stocks

South Korean stocks surged more than 5 percent Wednesday, on a semiconductor rally boosted by the ongoing U.S. chip giant Nvidia’s global artificial intelligence (AI) conference. The Korean won strengthened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 284.55 points, or 5.04 percent, to 5,925.03.

The index came under strong buying pressure from foreigners and institutional investors, triggering the Korea Exchange (KRX), the country’s main bourse operator, to issue a buy-side sidecar near the closing bell.

Program trading for the KOSPI was suspended for five minutes at 2:34 p.m., according to the KRX.

Offshore and institutional investors snapped up a combined net 4 trillion won (US$2.7 billion) worth of equities. Retail investors, on the other hand, offloaded 3.9 trillion won.

Trade volume was heavy at 1.1 billion shares worth 26.1 trillion won, with winners far outnumbering losers 614 to 278.

Investors’ appetite for semiconductors increased, following remarks from Nvidia’s Chief Executive Officer (CEO) Jensen Huang on Samsung Electronics, Lee Kyoung-min, an analyst at Daishin Securities, said.

During the ongoing four-day event in California, Huang said on Monday he wants to “thank Samsung, who manufactures the Groq LP30 chip” for the company, adding that the chips are in production and would be shipped in the second half of this year.

“The stock market’s sensitivity to geopolitical issues in the Middle East is markedly declining,” Lee added.

Most large cap shares ended bullish.

Top-cap Samsung Electronics jumped 7.53 percent to 208,500 won, while its chipmaking rival SK hynix climbed 8.87 percent to 1,056,000 won.

Nuclear power plant builder Doosan Enerbility rose 2.78 percent to 107,300 won, on anticipations alternative energy sources would benefit from the recent spike in oil prices.

Brent crude, the international oil benchmark, has remained at the US$100 per barrel level for the past five sessions.

In contrast, defense shares lost ground as investors went to lock in profits. Hanwha Aerospace inched down 0.43 percent to 1,390,000 won, and LIG Nex1 retreated 2.27 percent to 689,000 won.

The Korean won was quoted at 1,483.1 won against the U.S. dollar as of 3:30 p.m., up 10.5 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 6.3 basis points to 3.261 percent, and the return on the benchmark five-year government bonds retreated 6.7 basis points to 3.511 percent.

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WASHINGTON — The United States plunged further into conflict with Iran on Tuesday as a new round of strikes heightened fears of an expanding war in the Middle East, sending markets reeling and oil prices soaring and drawing urgent calls from European leaders for a plan forward.

President Trump acknowledged during an Oval Office appearance that the public would feel some economic pain as fighting continues to threaten areas that are critical to the world’s oil and natural gas production.

“As soon as this ends, those prices are going to drop, I believe lower than ever before,” Trump said, though he did not provide a clear time frame for when the conflict might end.

As the war stretched into its fourth day on Tuesday, Israel struck Iranian missile launch facilities and weapon factories and Iran retaliated across the Persian Gulf region, including attacks on U.S. diplomatic sites in Saudi Arabia, Kuwait and Dubai.

The conflict simultaneously set off alarms in the global markets, prompting stocks in Europe and Asia to plunge and the S&P 500 to drop nearly 1% after falling as much as 2.5% in early trading.

European governments were also forced to contend with the fallout, with some countries increasing their military presence in the region as their actions are closely monitored by Trump, who publicly singled out countries that he thought had been helpful in his war efforts so far.

“Spain has been terrible,” Trump told reporters in the Oval Office while threatening to “cut off all trade with Spain” after he said the country had denied American forces access to its military bases.

Trump said he was “not happy with the U.K. either” and complained about not being allowed to use a military base on Diego Garcia in the Chagos Islands. Without access to that military base, Trump said American planes were forced to fly “many extra hours.”

“We were very surprised. This is not Winston Churchill that we’re dealing with,” Trump said. Churchill served as Britain’s prime minister during World War II.

As Trump threatened European allies, he sat next to German Chancellor Friedrich Merz, underscoring the fraught landscape that world leaders are navigating as American and Israeli forces work to destroy Iran’s missile capabilities and nuclear program and eye a potential change in government.

During their meeting, Trump said Germany has allowed the United States to use its air bases. Beyond that help, Trump said, “we’re not asking them to put boots on the ground or anything.”

When asked by reporters how Germany intended to help in the conflict, Merz said he wanted to focus on talking to Trump about what comes “the day after” the war ends.

“We are on the same page in terms of getting this terrible regime in Iran away and we will talk about the day after, what will happen then, if they are out,” Merz said.

Trump talks about regime change options

Trump did not have much to say yet on what will come next and was unclear on who will lead the Iranian government, saying that U.S. and Israeli military operations had killed the people who he thought could have filled the leadership vacuum.

“Most of the people we had in mind are dead,” Trump said. “Now, we have another group, but they may be dead also based on reports so I guess you have a third wave coming in and pretty soon we’re not going to know anybody.”

His remarks were a startling acknowledgment in part because minutes earlier he said the worst-case scenario in his mind was that the military operation would take place and “then somebody takes over who is as bad as the previous person.”

“That could happen,” Trump said.

Asked if Crown Prince Reza Pahlavi, son of the former shah, is someone he would like to run the country, Trump said he is a “very nice person,” but did not say for sure whether he is his choice.

The president and his top aides have offered varying explanations when asked about regime change, drawing criticism from Democrats and some conservatives who are demanding to know why Americans are being dragged into a war with no clear end in sight.

On Saturday, when U.S. and Israeli forces first struck Iran, Trump said overthrowing Iran’s theocratic regime was part of his rationale. But on Monday, he emphasized that Iran’s missiles posed a threat to the United States, and therefore theattack was carried out to eradicate its missile capability and nuclear program.

After briefing lawmakers Monday afternoon, Secretary of State Marco Rubio told reporters that the United States launched a “preemptive” attack on Iran because officials knew Israel was going to strike the country — a move that he said would have put U.S. forces at risk and led to even more U.S. casualties. As of Tuesday, six American troops have been killed in combat.

House Speaker Mike Johnson (R-La.), after being briefed by Trump administration officials on Monday afternoon, said, “Israel was determined to act in their own defense, with or without American support.”

“If Israel fired upon Iran, and took action against Iran to take out the missiles, then they would have immediately retaliated against U.S. personnel and assets,” Johnson told reporters.

Trump disputed the suggestion that Israel’s plans to attack Iran prompted him to launch the strikes, saying it was the other way around.

“If anything, I might have forced Israel’s hand,” Trump said Tuesday. “But Israel was ready, and we were ready, and we’ve had a very, very powerful impact because virtually everything they have has been knocked out.”

But it was unclear how far along the U.S. military is in accomplishing its mission.

In a letter Monday, Trump told Congress that while the “United States desires a quick and enduring peace, it is not possible at this time to know the full scope and duration of military operations that may be necessary.”

Senate Minority Leader Chuck Schumer (D-New York) warned in a speech on the Senate floor that the administration’s murky strategy is not good for the country.

“History teaches us a simple lesson: Wars without a clear objective do not stay small. They get bigger, they get bloodier, they get longer, they get more expensive,” Schumer said. “This is not a defensive war. This is not a necessary war. This is a war of choice.”

The latest attacks on the region

Tuesday saw yet another expansion of the war when Israeli troops blitzed into Lebanon in a bid to dislodge the Iran-backed Shiite militant group Hezbollah.

The ground invasion comes one day after Hezbollah lobbed rockets and drones at an Israeli military position across the border; an attack, the group said, that was vengeance for the killing of Iranian Supreme Leader Ayatollah Ali Khamenei and a response to Israel’s near-daily violations of a ceasefire brokered by the U.S. in November 2024.

The attack sparked a massive Israeli assault on dozens of villages and towns in southern Lebanon, as well as on the southern suburbs of the Lebanese capital, Beirut. The strikes killed 40 people, wounded 246 others and saw tens of thousands forced to leave their homes and scramble for shelter in Beirut and elsewhere, according to Lebanese authorities.

The Lebanese army said Tuesday that it was withdrawing from positions in southern Lebanon ahead of a ground incursion by Israeli troops. The Israeli military’s Arabic-language spokesman then issued a warning to residents of some 80 towns and villages in that region to “immediately evacuate your homes” and move northward.

Hezbollah, meanwhile, maintained a defiant stance and continued rocket and drone launches into Israel.

“The era of patience has ended, and we have no option but to return to resistance,” said Mahmoud Qatari, who chairs Hezbollah’s Political Council. “If Israel wants an open war, so be it.”

The invasion comes more than a year after Israel occupied parts of southern Lebanon in 2024. After the ceasefire came into effect, Israel withdrew from most parts of the country save for five positions near the border. Yet in the 15 months since the ceasefire was signed, it has proved to be more notional for Lebanon, with Israeli warplanes and troops conducting well over 10,000 truce violations, according to the U.N.

Israel says its actions are to stop Hezbollah from reconstituting itself near the border, but the result has meant residents of border towns and villages in southern Lebanon have been unable to return home.

Israel’s military spokesman, Brigadier Gen. Effie Defrin, said in a statement that troops were “creating a buffer” inside Lebanon between residents in northern Israel “and any threat.”

As the conflict has escalated, some 1,600 Americans stranded across the region have requested assistance and the Trump administration is trying to help evacuate them, Rubio said. But the effort has faced challenges because Iranian missiles have struck many Mideast airports.

“We know we are going to be able to help them,” Rubio said. “It is going to take a little time because we do not control the airspace closures.”

Ceballos reported from Washington, Bulos from Khartoum, Sudan.

The US-Israeli military campaign that began on Saturday has already killed Iran’s Supreme Leader Ali Khamenei and senior commanders, triggered retaliatory strikes across the region and raised the spectre of prolonged disruption to global energy flows.

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While diplomats scramble and the UN calls for restraint, certain defence contractors and energy majors have emerged as early market victors.

As the conflict enters its fourth day, demand for advanced weaponry, missile-defence systems and intelligence platforms is projected to surge.

Lockheed Martin’s stock, the world’s largest defence contractor by revenue, hit a new all-time high on Monday, closing at $676.70 after rising over 4%.

Its F-35 fighters, precision munitions and radar systems are central to the air campaign under way over Iran.

The rally extended across the defence sector.

Northrop Grumman shares jumped 6%, lifted by its stealth-bomber and missile-defence technologies.

RTX, formerly Raytheon, gained nearly 5% while L3Harris Technologies and General Dynamics also recorded solid increases.

Palantir Technologies, whose data-analytics tools support intelligence operations, rose almost 6%.

European companies followed the upward trend on a more modest scale. Germany’s Renk and Italy’s Leonardo posted gains as investors eyed possible increases in NATO procurement and export orders.

Analysts note that defence budgets, already earmarked for growth in 2026, now face even fewer hurdles in Washington and European capitals.

With President Trump stating that operations could last “four to five weeks” or “far longer”, and Iran continuing missile and drone barrages, markets are positioning for weeks of high-intensity military activity.

The gains reflect classic geopolitical risk pricing.

Other market outliers

These rises stand in sharp contrast to broader equity weakness, highlighting how narrowly the benefits are concentrated. Beyond the pure-play defence names, energy companies have been the other clear outperformers, riding the oil and gas wave.

Iranian retaliation has already included strikes to energy sites in Saudi Arabia and Qatar, threats to close the Strait of Hormuz, which could choke off roughly 20% of global oil supply and send energy prices soaring.

The international benchmarks for oil, Brent crude (BZ) and West Texas Intermediate (WTI), are trading at over $82.50 and $75.50 respectively, at the time of writing.

Alongside them, integrated oil majors moved swiftly higher.

ExxonMobil shares rose more than 4% recording a new all-time high, while Chevron, Occidental Petroleum and ConocoPhillips posted comparable gains.

In Europe, Shell and TotalEnergies advanced in line with the global pricing surge.

The QatarEnergy LNG production halt announced on Monday, following Iranian drone strikes on Ras Laffan and Mesaieed facilities, sent European benchmark TTF gas prices over 50% higher, reaching €62/MWh by Tuesday.

Markets reacted swiftly as the indefinite shutdown raised immediate fears of rerouted demand and renewed energy inflation risks in Europe.

LNG equities climbed notably since Monday’s open on the news.

Cheniere Energy, the largest LNG exporter in the US, Venture Global and Australia’s Woodside Energy, all saw intraday strength at the start of the week.

However, analysts caution that actual substitution will take time due to shipping and contract constraints, keeping price action geopolitically sensitive.

The European Commission announced it is closely tracking both price and supply developments and will convene an Energy Task Force with Member States, in liaison with the International Energy Agency, for a meeting sometime this week.

Published on
02/03/2026 – 10:23 GMT+1

European markets cratered on Monday as the fallout from a dramatic weekend of US and Israeli strikes on Iran rattled investors across the continent.

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The Euro Stoxx 50 shed 2% at the open, with the broader pan-European Stoxx 600 close behind at -1.8% — and the selling shows no signs of stopping.

Regional indices from Frankfurt to Paris to Milan are all in the red, spooked by an escalating conflict that has choked shipping traffic through the Strait of Hormuz and drawn Hezbollah into the fray on Sunday.

In London, the FTSE 100 is having the more durable response, only falling around 0.3%.

However, Germany’s DAX 30 edged down 1% whilst France’s CAC 40 dropped more than 1.4%.

Italy’s FTSE MIB fell roughly 1.8%, the Netherlands’ NL 25 declined over 1% and Spain’s IBEX 35 has seen a sharp drop of more than 2%.

Before European markets opened, Japan’s Nikkei 225 was already in free fall and is currently down over 2.3%.

Likewise, US futures opened lower on Sunday with the E-mini S&P 500 dropping over 1.6% and E-mini NASDAQ down more than 2%.

In the UAE, regulators have taken the dramatic step of shutting down both the Abu Dhabi Securities Exchange and the Dubai Financial Market for the next two days.

The Capital Market Authority made no attempt to dress it up and the closures are explicitly designed to prevent panic selling after a staggering 165 ballistic missiles, 541 drones, and 2 cruise missiles rained down on the country over just 48 hours.

Oil and precious metals

While global markets sink into negative territory, crude oil prices rose in early trade on Monday morning as investors continue to weigh the potential impact of escalating tensions in the Middle East on the supply of energy.

The price of a barrel of US benchmark crude initially surged by about 8%. It later traded 5.9% higher at $71.00 per barrel. Brent crude rose 6.2% to $77.38 per barrel.

Gold is up roughly 2.5% while silver climbed 2% and platinum 1.2% as well.