Key facts
- Seoul stocks closed lower for the second consecutive session on Friday.
- Foreign investors were net sellers of South Korean equities.
- Investor sentiment was dampened by geopolitical tensions in the Middle East.
- Tensions specifically involved the Strait of Hormuz.
- The Korean won strengthened against the U.S. dollar.
Seoul's stock market experienced a decline for the second consecutive trading day on Friday, with foreign investors being significant sellers of equities. The downturn was attributed to a broader dampening of investor sentiment, which was negatively impacted by renewed geopolitical tensions in the Middle East, particularly those surrounding the Strait of Hormuz. Despite the downward trend in the stock market, the South Korean won demonstrated strength, appreciating against the U.S. dollar. This indicates a complex market dynamic where currency markets reacted differently to the geopolitical events than the equity markets. The specific reasons for the foreign selling were not detailed, but the general unease stemming from the Middle East situation appears to be the primary driver affecting investor behavior in the South Korean market.