South Korean stocks opened significantly lower on Thursday following attacks on critical energy infrastructure in the Middle East amidst escalating tensions between the US, Israel, and Iran, compounded by the US Federal Reserve’s decision to hold steady on interest rates.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 128.08 points, a 2.16 percent decrease, to reach 5,796.95 within the first 15 minutes of trading.
Overnight in the US, the Dow Jones Industrial Average experienced a 1.63 percent decline, while the tech-focused Nasdaq Composite fell by 1.46 percent, and the S&P 500 retreated by 1.36 percent.
Investor sentiment soured after reports surfaced of an alleged Israeli strike on Iran’s South Pars gas field, followed by a retaliatory Iranian strike on a major liquefied natural gas (LNG) facility in Qatar, which has consequently driven up global oil prices.
The Federal Reserve’s decision to maintain its policy rate within the 3.5-3.75 percent range further dampened market enthusiasm.
In Seoul, the majority of leading companies’ shares began trading in negative territory.
Tech giant Samsung Electronics saw a loss of 2.64 percent, and its rival in the semiconductor industry, SK hynix, dropped by 2.84 percent.
Automaker Hyundai Motor experienced a decrease of 3.12 percent, while its affiliate Kia Motors declined by 1.71 percent.
AI investment firm SK Square fell by 2.22 percent, and leading battery manufacturer LG Energy Solution decreased by 1.96 percent.
Defense company Hanwha Aerospace experienced a drop of 1.33 percent, and major shipbuilder HD Hyundai Heavy Industries contracted by 2.37 percent.
Biopharmaceutical company Celltrion plummeted by 3.1 percent.
