US President Donald Trump recently wrote to Congress stating that the US war with Iran has "ended" and that he has extended the ceasefire agreement indefinitely. He also said that from today the US would assist in evacuating some stranded vessels from the Strait of Hormuz, but he is dissatisfied with Iran's new peace proposal. Futures for the three major US stock indices were mixed. DJIA futures fell 22 points or 0.04%, while S&P 500 futures and Nasdaq futures rose 0.19% and 0.36%, respectively.

Major Asia-Pacific markets broadly advanced today (4th). Taiwan's market closed up 1,778 points or 4.6% at 40,705, a record closing high. South Korea's Kospi closed up 338 points or 5.1% at 6,936, also a record high. Hong Kong stocks rose 318 points or 1.2% in the afternoon to 26,095, with turnover of HKD157.607 billion. Mainland China, Japan and Thailand markets were closed for holidays today.

Related News Citi Raises S Korea's Econ Growth Forecast to 2.9%, Lifts KOSPI TP to 8,500
After US tech companies confirmed massive investment plans in AI data centers last week, semiconductor stocks in the Asia-Pacific region rallied. Samsung Electronics rose 5.4% to KRW232,500, a record high. SK Hynix surged 12.5% to close at KRW1,447,000, also a record high.

SK Hynix's market capitalization surpassed KRW1,000 trillion (equivalent to over USD680 billion), becoming the second company listed on the Korea Composite Stock Price Index to exceed this level after Samsung Electronics.

Eugene Investment & Securities (Eugene I&S) initiated coverage on SK Hynix with a TP of KRW2.3 million. The brokerage expects SK Hynix's 2Q26 sales and operating profit to reach KRW82.3 trillion (approximately USD55.988 billion) and KRW63.7 trillion (approximately USD43.335 billion), respectively. Researcher Son In-joon said that based solely on currently projected server demand growth, supply shortages in 2027 will further intensify. Once this year's weak smartphone and PC shipment demand, as well as content growth, recover, supply tightness will be further amplified. Son added that memory chipmakers are screening major clients and advancing long-term agreement (LTA) negotiations under minimum price guarantee mechanisms on highly favorable terms.

Related News G Sachs: AI Investment Boom Spillover to Asia; Taiwan, S Korea Biggest Regional Winners
Samsung Electronics' gains last month lagged SK Hynix by more than 25 ppts. On the 23rd of last month, Samsung's union held a rally demanding larger wage increases and threatened to launch an 18-day large-scale strike starting May 21. Foreign media cited Stanley Tang, Senior Portfolio Manager at Sumitomo Mitsui DS Asset Management, as saying that investors remain optimistic about AI-driven HBM demand but are concerned about a potential strike at Samsung Electronics.

At the end of last month, Citi lowered Samsung Electronics' TP to KRW300,000 from KRW320,000, noting that Samsung is a long-term beneficiary of memory market growth, but bonus-related provisions amid escalating labor disputes may erode profits. In contrast, BofAS raised its TP for SK Hynix, stating that it has assumed Samsung will make provisions for additional employee bonuses in 2Q26, and that a potential strike at Samsung would further improve the pricing environment for SK Hynix. (da/a)

AASTOCKS Financial News