Key facts
- South Korean stocks opened sharply lower on Wednesday.
- The KOSPI index fell 2.7 percent to 6,651.07.
- U.S. military strikes on Iran led to higher oil prices and inflation worries.
- Major U.S. stock indices closed lower overnight.
- Key South Korean companies like Samsung Electronics and Hyundai Motor saw significant declines.
Seoul stocks opened sharply lower on Wednesday, mirroring losses on Wall Street, as escalating military hostilities in the Middle East between the United States and Iran pushed up oil prices and fueled concerns over inflation. The benchmark Korea Composite Stock Price Index (KOSPI) fell 184.73 points, or 2.7 percent, to 6,651.07 as of 9:15 a.m.
Overnight, major U.S. stock indices closed lower. The Dow Jones Industrial Average fell 0.79 percent, the S&P 500 lost 0.71 percent, and the tech-heavy Nasdaq composite dropped 1.03 percent. These declines were attributed to a new round of U.S. military strikes on Iran, which drove up oil prices and stoked fears of inflation in the U.S. economy. Inflation worries also triggered a selloff in government bonds, with the benchmark 10-year U.S. Treasury yield reaching its highest point since January of the previous year.
In Seoul, most shares opened in negative territory. Market bellwether Samsung Electronics tumbled 3.26 percent, and its chipmaking rival SK hynix sank 3.01 percent. Top carmaker Hyundai Motor slumped 3.87 percent, and major energy firm Doosan Enerbility slid 3.32 percent. Retail giant Shinsegae dipped 6.08 percent, and leading pharmaceutical firm Samsung Biologics retreated 1.32 percent.
The Korean won was quoted at 1,371.05 won against the U.S. dollar as of 9:15 a.m., up 2.35 won from the close of the previous stock trading session.