Seoul shares open sharply lower on renewed Iran tensions
Seoul, June 10
South Korean stocks started sharply lower on Wednesday on news that the United States has launched new strikes on Iran and overnight tech losses on Wall Street.
After opening 2.43 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) shed 125.98 points, or 1.56 percent, to 7,970.95 in the first 15 minutes of trading, reports Yonhap news agency.
The U.S. has struck Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz, according to foreign media, which sapped investors' risk appetite.
Market sentiment was also weighed down as doubts over the valuation of stocks related to artificial intelligence (AI) resurfaced on a disappointing earnings forecast for Broadcom and news that Crusoe Energy Systems, a data centre developer, suspended one of its projects upon the request of an unidentified big tech customer.
The tech-heavy Nasdaq composite closed 0.97 percent lower, and the S&P 500 dropped 0.26 percent, while the Dow Jones Industrial Average rose 0.17 percent.
Major tech shares led the market decline, with Broadcom losing 1.12 percent, Apple sliding 3.64 percent, Micron falling 1.4 percent and Nvidia down 0.2 percent.
In Seoul, market top-cap Samsung Electronics kicked off 2.8 percent lower, tracking U.S. tech losses, while its chipmaking rival SK hynix dropped 2.08 percent.
AI investment firm SK Square dipped 3.31 percent, and Samsung Electro-Mechanics slipped 1.62 percent.
Samsung Life Insurance slid 5.6 percent, and Samsung C&T contracted 3.61 percent.
Home appliances maker LG Electronics pulled back 2.22 percent, and internet portal operator Naver plunged 4.28 percent.
Auto and battery shares were mixed.
Hyundai Motor rose 0.78 percent and its auto parts-making affiliate Hyundai Mobis jumped 2.18 percent, while its sister Kia dipped 0.55 percent.
Leading battery maker LG Energy Solution gained 1.01 percent, but its smaller rival Samsung SDI went down 0.58 percent.
Defence giant Hanwha Aerospace surged 4.04 percent.
The Korean won was trading at 1,516 won against the U.S. dollar at 9:15 a.m., down 3.9 won from the previous session.
— IANS
Reader Comments
Interesting to see Hanwha Aerospace surging while tech stocks fall. War is profitable for some, I guess. But as an investor, this volatility is nerve-wracking. It's like trying to catch a falling knife.
Again Iran tensions? 😩 This is going to hurt our import bills. India buys a lot of oil from the Gulf. If prices spike, rupee will weaken further and inflation will bite. Hope our diplomats are working behind the scenes for de-escalation.
Hmm, AI bubble worries resurfacing? That Broadcom news and Crusoe project halt — maybe the hype around AI is cooling. Markets always overreact. Samsung and SK Hynix dropping is concerning for our semiconductor aspirations though. We're still far from being self-reliant in chips.
As someone who tracks global markets, this isn't just a Korea problem. The whole region feels the heat — Japan, India, China all will see some impact tomorrow. Lost 1.56% in 15 minutes is brutal. Time to stay cautious and maybe buy the dip later.
Defence stocks up 4% while everything else crashes — says a lot about human nature. But honestly, this feels like a knee-jerk reaction. Iran-US tensions have been simmering for years. Markets will recover once cooler heads prevail. For now, hold tight! 🫡
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