Seoul Stocks Plunge Amid Middle East Tensions, Tech Sell-off
Quick Look
- Seoul stocks, led by tech heavyweights, fell sharply Friday morning, with the KOSPI down 4.87%, as investors reacted to escalating Middle East tensions and U.S.
- President Trump's threat against Iran, pushing oil prices higher.
AI-generated summary
Why It Matters
Seoul stocks fell sharply due to concerns over escalating Middle East tensions and U.S. President Donald Trump's threat of a "massive attack" on Iran.
SEOUL, July 24 (Yonhap) -- Seoul stocks were trading sharply lower late Friday morning as investors sold off tech heavyweights amid concerns over escalating tensions in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 345.3 points, or 4.87 percent, to 6,751.56 as of 11:36 a.m.
After opening lower, the index widened its losses as foreigners and institutional investors dumped shares in tech, finance and automakers, triggering the bourse operator to temporarily halt program trading for KOSPI-listed stocks at 11:28 a.m.
U.S. stocks closed lower overnight, as U.S. President Donald Trump's threat he could decide on a "massive attack" on Iran heightened anxiety over the ongoing war between Washington and Tehran.
Oil prices also moved upward, with Brent crude futures, the global oil benchmark, topping US$100 per barrel.
Most market top-caps were trading lower.
Chip giant Samsung Electronics dipped 6.39 percent, while industry rival SK hynix shed 6.2 percent.
Top carmaker Hyundai Motor sank 8.45 percent, defense giant Hanwha Aerospace added 3.34 percent, and major financial company KB Financial fell 5.22 percent.
The Korean won was trading at 1,463.4 won against the U.S. dollar, as of 11:36 a.m., up 10.8 won from the previous session.
Open Questions
- What specific actions will the US take against Iran?
- How will the Middle East situation evolve?
