Seoul Stocks Plunge 4% as Middle East Conflict Fuels Oil Supply Fears

The benchmark Korea Composite Stock Price Index (KOSPI) fell 216.2 points, or 3.98 per cent, to 5,222.67 as of 11:20 a.m (Seoul time), reports Yonhap news agency.

The index opened nearly 5 percent lower and had been under downward pressure due to heavy foreign selling.

The war in the Middle East, which began in late February following U.S.-Israeli strikes on Iran, has shown signs of further escalation, as the Houthis fired missiles at Israel over the weekend and warned of continued military operations until attacks on Iran stop.

The move pushed up global oil prices as fears of further disruptions to supply intensified.

U.S. President Donald Trump said negotiations with Iran to end the war are under way, but Washington has ordered thousands of troops to the region, stoking fears of ground operations.

Market bellwether Samsung Electronics slid 3.9 percent, while chip giant SK hynix sank 5.75 percent.

Top automaker Hyundai Motor dropped 5.71 percent, while its sister affiliate Kia tumbled 4.24 percent.

Bio giant Samsung Biologics decreased 4.92 percent, and Celltrion went down 2.91 percent.

Defence giant Hanwha Aerospace declined 3.45 percent, and nuclear power plant builder Doosan Enerbility fell 5.2 percent.

Leading shipbuilder HD Hyundai Heavy and its rival Hanwha Ocean lost 4.81 percent and 4.95 percent, respectively.

But leading battery maker LG Energy Solution rose 3.55 percent, and Samsung SDI added 1.6 percent.

The local currency was trading at 1,513.2 won against the greenback at 11:20 a.m., down 4.3 won from the previous session, said the report.

- IANS