Key facts
- Seoul stocks opened higher, driven by chipmakers.
- The KOSPI index gained 2% at the opening bell.
- Container shipping costs to the Middle East increased by 14.5% in July.
- Wall Street indices closed lower overnight amid inflation and geopolitical concerns.
Seoul stocks opened higher on Tuesday, with major chipmakers leading the gains, despite losses on Wall Street and ongoing concerns over Middle East tensions. The benchmark KOSPI index rose 2 percent to 7,127.77 at the opening bell.
Overnight, the Dow Jones Industrial Average fell 0.51 percent, and the Nasdaq Composite declined 0.32 percent. Elevated oil prices fueled concerns about inflation, while hopes for a deal with Iran diminished after President Donald Trump indicated disinterest in extending an expiring agreement.
Adding to regional concerns, container shipping costs from South Korea to the Middle East continued to rise in July. According to data from the Korea Customs Service, the average shipping charge for a 40-foot container increased by 14.5 percent from the previous month to 8.78 million won (US$6,217). This marks a continued upward trend since March. Shipping costs to the U.S. west coast also saw an increase of 11.1 percent, while those to the east coast rose 14.4 percent. Costs to the European Union jumped significantly by 36.4 percent.