South Korean Stocks Sink Over 3% as Trump’s Iran Warning Triggers Global Market Jitters
KOSPI Reverses Early Gains Amid Escalating Geopolitical Tensions
Seoul, April 2: South Korean equity markets witnessed a sharp sell-off on Thursday morning, with the benchmark Korea Composite Stock Price Index (KOSPI) plunging more than 3 percent after fresh geopolitical tensions rattled investor sentiment.The KOSPI dropped 197.1 points, or 3.6 percent, to 5,281.6 as of 11:20 a.m. The index had initially opened over 1 percent higher, tracking overnight gains on Wall Street, but quickly reversed course following remarks from U.S. President Donald Trump that heightened concerns over the ongoing conflict with Iran.
Trump’s Warning Dampens Hopes of Conflict Resolution
In an address earlier in the day, Trump warned that the United States would “severely” strike Iran within the next two to three weeks. He stated that the U.S. would hit Iran “extremely hard” and could target key energy facilities if a deal is not reached.The comments dampened expectations of a near-term resolution to the month-long conflict, which began in late February after U.S.-Israeli strikes on Iran. The escalating situation has continued to disrupt global markets and heighten uncertainty.
Oil Prices Surge, Adding to Market Pressure
Following the remarks, global oil prices surged sharply. Brent crude jumped more than 4 percent, crossing the US$100 per barrel mark. The spike in oil prices has intensified concerns around inflation and the risk of a broader economic slowdown.Heavy Selling Across Key South Korean Stocks
Most major South Korean stocks traded lower during the session, reflecting widespread risk aversion among investors.- Samsung Electronics declined 5.17 percent
- SK Hynix dropped 5.15 percent
- Hyundai Motor fell 4.3 percent, while Kia lost 2.06 percent
- LG Energy Solution edged down 0.37 percent
- SK Square tumbled 5.59 percent
- Doosan Enerbility decreased 4.72 percent
- KB Financial slipped 1.35 percent
- POSCO fell 1.01 percent
- HD Hyundai Heavy Industries declined 2.21 percent
- Hanwha Ocean dropped 4.49 percent
Mixed Performance in Select Sectors
Bio and defense stocks showed mixed trends. Samsung Biologics gained 1.34 percent, while Celltrion fell 3.83 percent.On the upside, defense-related shares saw notable gains amid rising geopolitical tensions:
- Hanwha Aerospace surged 6.3 percent
- Samsung SDI rose 2.2 percent
Korean Won Weakens Against US Dollar
The South Korean currency also came under pressure. The won was trading at 1,520.2 against the U.S. dollar as of 11:20 a.m., weakening by 18.9 won compared to the previous session.Market Outlook
The sharp decline in South Korean equities highlights growing investor anxiety as geopolitical risks escalate and energy prices surge. The ongoing conflict continues to weigh heavily on global financial markets, with volatility expected to persist in the near term.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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