Key facts
- A US-Iran ceasefire agreement has expired.
- Oil prices and bond yields have risen following the expiration.
- Tehran has adopted an 'fully offensive' military posture.
- Seoul shares trimmed earlier gains as investors took profits.
- Tech stocks, including Samsung Electronics and SK hynix, led gains in Seoul.
- The Korean won strengthened against the U.S. dollar.
Seoul shares trimmed earlier gains late Tuesday morning as investors locked in profits amid fading hopes for a deal to end the war between the United States and Iran. The benchmark Korea Composite Stock Price Index (KOSPI) pared its gains after opening 2 percent higher, trading up 0.69 percent at 7,026.26 as of 11:20 a.m.
Retail investors and institutions sold a net 804.7 billion won (US$570 million) and 219.9 billion won worth of stocks, respectively, while foreigners bought a net 1.07 trillion won. Overnight, the Dow Jones Industrial Average shed 0.51 percent, while the tech-heavy Nasdaq composite declined 0.32 percent.
Elevated oil prices stoked inflation concerns, while prospects for a deal with Iran dimmed after U.S. President Donald Trump said he was not interested in extending an agreement with Iran that was set to expire. Tehran has shifted to an "fully offensive" military posture.
In Seoul, tech stocks continued to lead gains. Market bellwether Samsung Electronics rose 0.46 percent, and its chipmaking rival SK hynix jumped 4.07 percent. Leading refiner SK Innovation climbed 3.11 percent, and shipping firm HMM surged 6.12 percent. Among decliners, top carmaker Hyundai Motor fell 1.77 percent and defense giant Hanwha Aerospace declined 1.55 percent.
The Korean won was trading at 1,411.45 won against the U.S. dollar as of 11:20 a.m., up 4.15 won from the previous stock market session's close. Container shipping costs to the Middle East rose 14.5% in July, continuing a trend since March.