The Seoul stock market concluded Friday with a largely flat performance, as robust investor interest in defense and shipbuilding stocks helped to offset declines in major technology shares. This mixed trading session occurred amid persistent Middle East tensions, while the South Korean won depreciated against the US dollar.
Following a day of volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) registered a marginal dip of 0.18 point, settling at 6,475.63. This slight decline came just one session after the KOSPI achieved a new record high of 6,475.81, underscoring prevailing market uncertainty.
Globally, investor sentiment was further dampened by overnight declines in major U.S. indices. The Dow Jones Industrial Average slipped 0.36 percent, and the technology-heavy Nasdaq Composite fell 0.89 percent.
The ongoing geopolitical friction, particularly the lack of substantial progress in U.S.-Iran discussions, continued to weigh heavily on investor confidence.
Tensions in the Middle East intensified after U.S. President Donald Trump announced on Thursday (local time) an order for the Navy to target vessels deploying mines in the critical Strait of Hormuz. Simultaneously, President Trump noted that Iran appeared open to a deal and that negotiations were ongoing. Adding to the volatility, reports emerged that Iran had reactivated its air defense systems, highlighting the delicate geopolitical landscape.
Despite these escalations, optimism lingered for a potential second round of U.S.-Iran talks, which could potentially ease regional tensions and stabilize the Strait of Hormuz, a crucial global oil shipping artery.
