SEOUL, April 02 (AJP) - Asian stocks fell Thursday, led by energy-dependent South Korea, as U.S. President Donald Trump’s much-hyped address failed to deliver clarity on reopening the Strait of Hormuz, leaving markets with more uncertainty than relief.
Trump, speaking in a nationally televised address at 10 a.m. Korea time, said the conflict could continue for “two to three more weeks,” while offering no clear commitment to restoring access to the key shipping route. The remarks, coupled with continued military rhetoric, reinforced concerns over prolonged disruption to global energy supply.
The benchmark KOSPI dropped 3.96 percent to 5,261.78 as of 11:20 a.m., sharply reversing from the previous day’s rally as sentiment turned risk-off.
Institutional investors provided limited support, purchasing a net 341.8 billion won ($226 million), while retail and foreign investors sold 303.8 billion won and 159.0 billion won, respectively, signaling a broad pullback.
Large-cap stocks declined across the board. Samsung Electronics fell 4.8 percent to 180,600 won, while SK hynix dropped 4.3 percent to 855,000 won. Hyundai Motor lost 3.9 percent to 469,000 won, and Kia slipped 1.2 percent to 153,400 won. LG Energy Solution edged down 0.3 percent.
In contrast, defense and aerospace-related shares advanced, reflecting heightened geopolitical tensions and renewed interest in strategic industries. Hanwha Aerospace rose 6.9 percent to 1,425,000 won, supported by expectations of increased defense demand and strengthening momentum in the space sector.
The gains were further underpinned by optimism over NASA’s Artemis II lunar mission and reports that SpaceX has confidentially filed for an initial public offering, reinforcing long-term growth expectations in aerospace.
The KOSDAQ also fell, declining 3.3 percent to 1,079.8, with losses accelerating shortly after the start of Trump’s address at 10:02 a.m.
Selling pressure on the secondary board was led by institutions and foreign investors, which offloaded 182.2 billion won and 73.6 billion won, respectively, while retail investors bought 290.6 billion won, indicating a divergence in risk appetite.
The Korean won also erased most of the previous day’s gains, weakening to 1,520 per dollar as foreign outflows persisted.
Oil prices surged, with Brent crude rising 4.7 percent to $105.8 per barrel and West Texas Intermediate gaining 3.9 percent to $104.1, underscoring persistent supply concerns tied to disruptions in the Strait of Hormuz.
Across Asia, major indices also traded lower. Japan’s Nikkei 225 fell 1.3 percent, Hong Kong’s Hang Seng Index declined 0.8 percent, and China’s Shanghai Composite edged down 0.1 percent, reflecting a broader shift toward risk aversion.
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