Nikkei Opens Slightly Lower, Korean Stocks Rise Near 2%, BOJ Rate Hike Imminent, SK Hynix Rises Over 4%

TradingKey - During the Asian trading session on June 16, Japanese and South Korean stocks opened mixed on Tuesday. The Nikkei 225 Index opened at 69,288.91, down a marginal 0.04% from its previous close, while the TOPIX fell approximately 0.4% to around 3,984.4. South Korea's KOSPI opened up 1.8% at 8,696.55, extending yesterday's rally of over 5%.

[Source: TradingView]

In terms of heavyweight stocks, Kioxia opened approximately 3% higher at 93,910 yen, and SoftBank Group opened up about 0.4%. SK Hynix opened at 2.381 million won, rising more than 4%, while Samsung Electronics opened at 343,000 won, up about 1.5%.

On the geopolitical front, the U.S.-Iran ceasefire agreement continues to alleviate market concerns over Middle East oil supply disruptions. Brent crude futures dropped 4.76% overnight to settle at $83.17 per barrel, while WTI fell 4.87% to $80.75 per barrel. Lower oil prices provide a cost-related tailwind for Japan and South Korea, both major crude importers.

The Bank of Japan concludes its policy meeting today, with markets widely expecting a 25-basis-point interest rate hike to 1.0%, the highest level since 1995. Governor Kazuo Ueda is hospitalized due to illness, so Deputy Governor Ryozo Himino will preside over the meeting on his behalf, with Ueda submitting his opinions in writing.

Optimism continues in the South Korean market as foreign capital inflows persist, with the USD/KRW exchange rate falling to around 1,511 won on Monday. Investors are focusing today on the Bank of Japan's interest rate statement and South Korea's May import and export price indices.