South Korean shares rallied sharply as investor sentiment turned bullish following President Donald Trump's comments about an imminent agreement with Iran to conclude hostilities. The Kospi index climbed approximately 8% in a broad market advance driven by optimism that regional tensions could ease.

Risk appetite expanded across Asian markets as Trump indicated the US was close to finalizing a deal that would end the Iran conflict. Technology shares, particularly semiconductor names, led the gains amid expectations that reduced geopolitical uncertainty would benefit export-oriented businesses.

The rally reflects how Middle East developments continue to influence global investment flows, with chip stocks serving as a bellwether for risk sentiment. South Korea's heavy weighting in technology manufacturing makes its markets especially sensitive to geopolitical shifts affecting trade and supply chains.

Investors are pricing in improved prospects for South Korean exporters if the Iran situation stabilizes, though volatility remains likely until any agreement becomes concrete. The market reaction underscores the interconnected nature of modern financial markets.