Key facts
- Seoul stocks opened higher Tuesday, with the KOSPI up 0.58%.
- The gains came as investors bought beaten-down tech stocks.
- Lingering concerns over Middle East tensions were outweighed by bargain hunting.
- The KOSPI had fallen 4.46% on Monday and 6.37% on Friday.
- U.S. stocks closed lower overnight amid Middle East tensions and ahead of tech earnings.
- President Trump vowed Iran would pay for killing U.S. soldiers, while Saudi Arabia pledged to protect its ships.
Seoul stocks opened higher on Tuesday, July 21, 2026, as investors engaged in bargain hunting for heavily sold-off technology stocks. This buying activity helped to outweigh persistent concerns over escalating tensions in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) began the trading day up 37.61 points, or 0.58 percent, reaching 6,553.88. This followed a significant downturn on Monday, when the KOSPI closed down 4.46 percent, and a 6.37 percent drop on Friday.
Overnight, major U.S. stock indexes experienced declines. The S&P 500 slipped 0.2 percent, the Dow Jones Industrial Average fell 0.6 percent, and the tech-heavy Nasdaq saw a slight decrease of 0.05 percent. Investors in the U.S. were weighing the potential impact of renewed hostilities in the Middle East while anticipating earnings reports from key technology companies later in the week.
Geopolitical tensions remain a significant factor, with U.S. President Donald Trump stating that Iran would face consequences for the recent killing of three American soldiers, despite ongoing mediation efforts for a new truce. In response to threats from Houthi militants in Yemen, Saudi Arabia announced it would take all necessary measures to safeguard its ships.