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Seoul Stocks Drop as US-Iran Ceasefire Terms Fuel Market Jitters

South Korean stocks declined in morning trading as uncertainties persisted over the terms of a US-Iran ceasefire agreement. The benchmark KOSPI dropped nearly 1%, led by losses in major tech shares like Samsung Electronics and SK hynix. In contrast, oil refiners such as SK Innovation traded higher as geopolitical tensions supported crude oil prices. Analyst Han Ji-young noted the market was showing resilience despite the ongoing disagreements between Washington and Tehran.

Key Points: Seoul Shares Fall on US-Iran Ceasefire Uncertainties

  • KOSPI fell nearly 1%
  • US-Iran divided over ceasefire terms
  • Tech giants Samsung and SK hynix declined
  • Oil refiners rose on higher crude prices
  • Local currency weakened against the dollar
2 min read

Seoul shares down amid US-Iran ceasefire uncertainties

South Korea's KOSPI fell amid US-Iran tensions over ceasefire terms, impacting Samsung, SK hynix. Oil refiners gained as crude prices rebounded.

"Washington and Tehran are also at odds over Iran's uranium enrichment and jurisdiction over the Strait of Hormuz. - Han Ji-young"

Seoul, April 9

South Korean stocks lost ground late on Thursday morning as Washington and Tehran remained divided over the terms of a two-week ceasefire, including whether it includes ending Israel's offensive against Lebanon.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 57.93 points, or 0.99 percent, to 5,814 as of 11:20 am (local time), reports Yonhap news agency.

The United States and Iran reached a two-week ceasefire agreement on Tuesday (U.S. time), including the reopening of the crucial Strait of Hormuz.

Uncertainties surrounding tensions in the Middle East, however, continued as the U.S. and Iran were divided over whether the ceasefire includes ending Israel's offensive against Lebanon.

"Washington and Tehran are also at odds over Iran's uranium enrichment and jurisdiction over the Strait of Hormuz," Han Ji-young, an analyst at Kiwoom Securities, said.

Han noted that although the market is taking a breather, the South Korean stock market is not likely to experience any extreme volatility.

"With the U.S. market closing higher despite reports of disagreements during trading hours, the market is becoming more resilient to the war," Han added.

In Seoul, top market cap Samsung Electronics fell 2.38 percent, and SK hynix lost 2.42 percent.

Oil refiners traded higher as global crude prices rebounded amid geopolitical uncertainties, with SK Innovation rising 3.32 percent and S-Oil climbing 5.89 percent.

Carmakers traded mixed, with Hyundai Motor falling 0.98 percent, while its sister Kia added 1.07 percent.

Leading online search engine giant Naver slipped 0.99 percent, and Kakao shed 0.84 percent.

The local currency was trading at 1,479.9 won against the greenback at 11:20 a.m., down 9.3 won from the previous session.

- IANS

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Reader Comments

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Priya S
Interesting to see oil refiners like SK Innovation gaining while tech stocks fall. If crude prices keep bouncing due to this uncertainty, it will directly hit our petrol and diesel prices here. The government needs to have a solid plan to cushion the impact on common people. 🛢️
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Arjun K
The analyst says the market is becoming more resilient. That's a key point. After the initial shocks of Ukraine and now this, maybe global markets are learning to price in some level of constant geopolitical risk. Still, a full-blown conflict would be disastrous for the world economy.
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Sarah B
As someone who invests in Asian ETFs, this is concerning. South Korea is a major tech hub. A drop in Samsung and SK hynix doesn't just affect Seoul; it impacts global supply chains. I hope diplomats can find a lasting solution, not just a two-week pause.
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Vikram M
The Strait of Hormuz is so crucial for oil transport. Any trouble there sends shockwaves. India imports a massive amount of oil. This is a reminder why we need to aggressively push for renewable energy and reduce this dependency. Jai Hind! 🇮🇳
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Karthik V
While the focus is on stocks, let's not forget the human cost of the conflict itself. The article mentions Israel's offensive. Ceasefire uncertainties mean continued suffering for people on the ground. The market dip is one thing, but peace should be the ultimate goal.

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