SEOUL, April 13 (AJP) — Korean stocks closed lower Monday as investors moved to the sidelines amid fresh uncertainty in the Middle East, following U.S. threats to launch a maritime blockage operation in the Strait of Hormuz starting later in the day.
The benchmark KOSPI fell 0.9 percent to 5,808.6, after trading between a high of 5,827.73 and a low of 5,730.23.
Regional markets moved in tandem. Japan’s Nikkei 225 declined 0.7 percent and Hong Kong’s Hang Seng Index dropped 1.2 percent, while China’s Shanghai Composite Index edged up 0.06 percent, the only major market in the region to remain in positive territory.
Investor positioning reflected a clear shift to risk aversion. Foreign investors sold a net 456.4 billion won ($306.6 million), while institutions offloaded 701.6 billion won. Retail investors absorbed the selling, buying a net 750 billion won.
The retreat came as oil prices surged on escalating geopolitical tensions. Brent crude jumped 6.8 percent to $101.6 a barrel, while West Texas Intermediate rose 7.3 percent to $103.6, after Washington moved to impose targeted maritime restrictions on vessels linked to Iranian ports following failed weekend negotiations.
The escalation followed the collapse of ceasefire talks between the United States and Iran in Islamabad, with both sides trading blame for the breakdown, deepening uncertainty over energy supply routes through the Gulf.
Large-cap stocks in Seoul were broadly weaker. Samsung Electronics fell 2.4 percent to 201,000 won, Hyundai Motor dropped 2.3 percent to 478,500 won, LG Energy Solution declined 2.6 percent to 401,500 won, and Samsung Biologics slipped 1.3 percent.
In contrast, SK hynix rose 1.3 percent to 1,040,000 won, extending gains in line with global semiconductor strength, as the Philadelphia Semiconductor Index advanced 2.3 percent. Hanwha Aerospace also added 1.5 percent.
Losses were concentrated in industrial and cyclical sectors. Doosan Enerbility fell 0.9 percent, while the KRX Construction Index dropped 1.6 percent to 1,721.7, as expectations for Middle East reconstruction demand weakened after the diplomatic breakdown.
Despite the decline, volatility remained relatively contained. The CBOE Volatility Index fell 1.3 percent to 19.23, suggesting markets are still pricing in a controlled disruption rather than a full-scale supply shock.
In currency markets, the won strengthened slightly to 1,488.7 per dollar, while the dollar index rose 0.3 percent to 98.99.
The junior KOSDAQ outperformed, rising 0.6 percent to 1,099.8. Retail investors led gains on the secondary board, buying a net 264 billion won, while foreign and institutional investors sold 148.7 billion won and 93.2 billion won, respectively.
Sector gains were concentrated in digital infrastructure themes. Optical communication stocks surged 10.5 percent, while telecom equipment and 5G-related shares climbed 10.4 percent and 7.8 percent.
Among notable movers, Silicon Two jumped 10.7 percent to 47,200 won, while Pearl Abyss rose 3.1 percent to 57,300 won. EcoPro fell 1.8 percent to 143,700 won, extending weakness in secondary battery shares.
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