KOSPI Slides 3.12% on Middle East Tensions
Seoul stocks opened sharply lower Monday as geopolitical risk in the Middle East weighed on regional sentiment. The benchmark index dropped 3.12 percent in the first hour of trading.
The KOSPI index fell 215.35 points to close at 6,694.56 as of 9:16 a.m. local time. This decline occurred despite gains in U.S. markets on Friday.
Oil prices rose as uncertainty over the Strait of Hormuz persisted. Diplomatic talks to reopen the shipping route were suspended indefinitely by Omani officials.
Heavyweights Drag Market Lower
Most major constituents of the index traded in negative territory. Samsung Electronics declined 3.37 percent while SK hynix dropped 5.02 percent.
LG Energy Solution fell 2.22 percent and Hyundai Motor lost 4.05 percent. Hanwha Aerospace was the notable exception, gaining 1.39 percent on defense sector strength.
Currency Weakens Against Dollar
The Korean won lost value against the U.S. dollar in early trading. The exchange rate stood at 1,346.8 won per dollar.
This represented a depreciation of 2.7 won compared to the previous session close. The currency weakness reflected broader risk-off sentiment in Asian markets.
Geopolitical Risk Drives Volatility
Investors reacted to reports that Gulf diplomats and Iran officials would not meet Monday. The suspension of these talks removed a key catalyst for stabilizing oil supply expectations.
The S&P 500 had risen 0.86 percent on Friday before this news emerged. Nasdaq added 0.96 percent, but Seoul failed to mirror that momentum due to regional exposure to energy markets.
