Japan and South Korea Indices Open High and Move Higher, Nikkei 225 Index Just Breaks Through 69,000 Level, South Korea Index Futures Hit Circuit Breaker Again.

TradingKey - In the early Asian trading session on June 15, Asia-Pacific stock markets continued their strong rally. After opening 1.30% higher, the Nikkei 225 Index quickly expanded its gains, touching 69,200 points for the first time intraday and breaking the 69,000 psychological level to close up 4.84%.

[Nikkei Index breaks through the 69,000 mark for the first time; Source: indexes.nikkei.co ]

South Korea's KOSPI Index opened 5% higher and at one point rose over 8%; KOSPI 200 futures rose 5%, triggering a circuit breaker and a five-minute suspension of program trading.

The semiconductor sector surged across the board, with Samsung Electronics jumping 6% at the open, SK Hynix rising nearly 8%, and Japanese semiconductor giant Kioxia soaring 8%.

Previously on May 11, export data released by South Korea showed that exports in the first 10 days of June grew 85.9% year-on-year, with semiconductor exports surging 205.8% and exceeding $10 billion within a 10-day period for the first time, as hard data validated strong demand.

Meanwhile, expectations for a U.S.-Iran ceasefire are materializing rapidly, with Trump stating that an agreement is imminent and the Strait of Hormuz will be open for free passage, clearing the concentrated geopolitical risk premiums.

At the same time, SpaceX's $75 billion IPO has been smoothly completed, removing concerns over a liquidity drain and prompting capital to flow back into Asia-Pacific growth stocks.

It is worth noting that the probability of a Bank of Japan rate hike in June is nearing 100% as tightening expectations are quickly being realized, easing pressure on the yen's depreciation.

However, the KOSPI's year-to-date gain has neared 100%, with Samsung Electronics and SK Hynix rising 182% and 255%, respectively. With circuit breakers triggered several times this week, market breadth is extremely narrow and leverage remains at high levels, meaning the risk of a correction cannot be ignored.