Japanese and Korean stock markets experienced significant intraday volatility on June 19 after Switzerland's Foreign Ministry confirmed the cancellation of scheduled US-Iran talks. The Nikkei 225 index swung from gains exceeding 1% to briefly turning negative before closing 0.28% higher at 71,250.06 points, while South Korea's KOSPI index fluctuated from gains over 3.5% to losses exceeding 2.5% before settling 0.13% lower at 9,052.42 points. The talks cancellation stemmed from Israel's continued strikes on southern Lebanon, with the Israeli Defense Forces announcing overnight strikes on more than 80 Hezbollah targets on June 19. The geopolitical developments triggered risk-off sentiment across Asian markets, with analysts noting the Strait of Hormuz situation as a key factor influencing global risk appetite and asset pricing.
Nikkei 225 Closes 0.28% Higher After Intraday Swings
The Nikkei 225 index closed June 19 at 71,250.06 points, up 0.28%, after reaching an intraday high of 71,952 points that marked a new historical peak. The index posted a weekly gain of 7.92%, according to Wind data.
Among component stocks, Fujikura rose 15.69%, Furukawa Electric gained 15.10%, Kioxia advanced 12.07%, and Sumitomo Electric Industries climbed 10.53%. Kioxia's share price surpassed 100,000 yen, reaching 10.86 yen per share.
Declining stocks included Sumitomo Metal Mining, which fell over 7%, while Nomura Research Institute and Daiichi Sankyo each dropped more than 6%. NEC Corporation, Dentsu Group, and Japan Exchange Group declined over 5%, with Mizuho Financial Group, Sumitomo Chemical, and Nissan Motor falling more than 4%.
KOSPI Index Settles 0.13% Lower Following Wide-Range Fluctuations
South Korea's KOSPI index closed June 19 at 9,052.42 points, down 0.13%, after also touching a new all-time high during intraday trading. The index recorded a weekly gain of 11.43%.
SK Hynix rose as much as 7% intraday and closed 2.94% higher with a daily amplitude of 7.56%. Samsung Electronics gained over 3% intraday but closed 2.34% lower with a daily amplitude of 7.79%. Both stocks reached historical highs during the session.
DASCO and BOHAE BREW surged over 20%, while HWASHIN and KYUNGDONG INVEST gained more than 10%. Samsung Life Insurance rose 5.97% and SK SQUARE advanced 4.71%.
Declining stocks included DAEWON CHEM and Samhwa Electric, which fell over 10%. Hanwha Aerospace dropped 5.63%, ALTEOGEN declined 4.33%, Kakao fell 3.94%, Samsung Biologics decreased 3.92%, and Korea Electric Power Corporation slid 3.68%.
Swiss Foreign Ministry Confirms US-Iran Talks Cancellation
Switzerland's Foreign Ministry announced on June 19 through a statement on its website that US-Iran talks scheduled for that day at Bürgenstock near Lucerne in central Switzerland had been cancelled.
According to CCTV News citing media reports from June 18, a source indicated that Iran's negotiating delegation postponed its trip to Switzerland due to Israel's continued strikes on southern Lebanon.
The Israeli Defense Forces issued a statement on June 19 stating that Israeli forces struck more than 80 Hezbollah targets overnight and killed dozens of Hezbollah members due to repeated violations of the ceasefire agreement by Lebanon's Hezbollah.
On June 19, a brokerage analyst posted an update about the US-Iran talks on social media with the caption "risk off."
Haitong International's Zhang Yidong noted in a June 18 analysis that the Strait of Hormuz impasse represents the core source of this round of market turbulence, affecting global risk appetite in the short term and influencing the 10-year US Treasury yield through its impact on oil prices and inflation expectations in the medium term.
Hormuz Strait Records Highest Daily Vessel Transit Since Mid-April
Maritime data company AXS Marine reported on June 19 that 25 commercial vessels transited the Strait of Hormuz on June 18, marking the highest single-day passage volume since mid-April, according to Xinhua News Agency.
According to CCTV News, Iran's Persian Gulf Strait Management Authority announced on June 19 that in light of the signing of the Iran-US memorandum of understanding and relevant directives from competent authorities, vessels that submit passage applications according to regulations and meet relevant conditions within the announced timeframe will be arranged for transit.
According to the passage requirements published by the Persian Gulf Strait Management Authority, vessel transit applications must be submitted at least 48 hours before arriving at the Strait of Hormuz area.
FAQ
What caused the volatility in Japanese and Korean stock markets on June 19?
The intraday volatility was triggered by Switzerland's Foreign Ministry confirming the cancellation of scheduled US-Iran talks on June 19. The cancellation occurred after Iran's negotiating delegation postponed its trip to Switzerland due to Israel's continued strikes on southern Lebanon, with Israeli forces striking more than 80 Hezbollah targets overnight.
How did the Nikkei 225 and KOSPI indices perform on June 19?
The Nikkei 225 closed 0.28% higher at 71,250.06 points after reaching an intraday high of 71,952 points, posting a weekly gain of 7.92%. South Korea's KOSPI index closed 0.13% lower at 9,052.42 points after fluctuating from gains over 3.5% to losses exceeding 2.5%, recording a weekly gain of 11.43%.
What shipping developments occurred at the Strait of Hormuz?
Maritime data company AXS Marine reported that 25 commercial vessels transited the Strait of Hormuz on June 18, the highest single-day passage volume since mid-April. Iran's Persian Gulf Strait Management Authority announced on June 19 that vessels meeting requirements and submitting applications at least 48 hours in advance will be arranged for transit following the Iran-US memorandum of understanding.
