Key facts
- Seoul stocks turned lower after opening slightly higher.
- Concerns over escalating Middle East tensions impacted market sentiment.
- The KOSPI fell 0.59% to 6,477.71.
- U.S. President Donald Trump issued a warning to Iran.
- Samsung Electronics shares advanced, while Hyundai Motor shares declined.
Seoul stocks turned lower Tuesday after opening slightly higher, as escalating Middle East tensions tempered bargain hunting in battered tech heavyweights. The benchmark Korea Composite Stock Price Index (KOSPI) opened 0.58 percent higher but fell 38.56 points, or 0.59 percent, to 6,477.71 as of 9:15 a.m. The KOSPI had previously shed 4.46 percent on Monday and 6.37 percent on Friday.
Major U.S. stock indexes closed lower overnight, with the S&P 500 slipping 0.2 percent and the Dow Jones Industrial Average falling 0.6 percent, while the tech-heavy Nasdaq inched down 0.05 percent. Investors weighed the risk of renewed hostilities in the Middle East ahead of earnings reports from major technology companies.
U.S. President Donald Trump vowed that Iran "will pay" for killing three American soldiers, while mediators proposed a new truce. Saudi Arabia announced it would take all necessary measures to protect its ships following threats by Tehran-backed Houthi militants in Yemen.
In Seoul, most market heavyweights traded lower, though semiconductor shares advanced. Market top-cap Samsung Electronics gained 2.25 percent, and its rival SK hynix rose 0.28 percent. Top carmaker Hyundai Motor declined 3.26 percent, battery maker LG Energy Solution slid 0.31 percent, and defense giant Hanwha Aerospace edged down 0.11 percent.
The Korean won was trading at 1,475.7 won against the U.S. dollar, up 2.2 won from the previous session.