SEOUL, March 04 (AJP) - Asian markets tumbled Wednesday as escalating tensions in the Middle East rattled investors, with Seoul stocks plunging more than 8 percent and the Korean won sliding to near crisis-era levels.
A pledge by the United States to provide security escorts and insurance guarantees for tankers navigating the Strait of Hormuz did little to reassure investors. Markets across the region remain highly sensitive to the waterway, through which a large share of Middle Eastern oil exports must pass.
South Korea’s benchmark KOSPI and the tech-heavy KOSDAQ both plunged more than 8 percent. In just two sessions since the outbreak of war, the KOSPI has lost more than 15 percent, triggering the sidecar trading curb for two consecutive days.
Overnight, U.S. equities also closed lower as geopolitical risks in the Middle East continued to weigh on sentiment. The Dow Jones Industrial Average fell 0.83 percent, while the S&P 500 and Nasdaq Composite declined 0.94 percent and 1.02 percent, respectively.
Investor anxiety intensified after Iran moved to block the Strait of Hormuz, sending oil prices sharply higher for a second straight day and raising fresh concerns over global inflation.
On the Seoul bourse, individual and institutional investors were net buyers of 539.6 billion won ($364.6 million) and 403.3 billion won, respectively, while foreigners offloaded a net 996.1 billion won worth of shares.
Major sectors — including chips, autos, batteries and biopharmaceuticals — fell sharply. Refinery stocks, which had surged a day earlier on expectations of higher refining margins, also retreated. SK Innovation dropped 9.55 percent to 118,400 won, while GS Holdings fell 4.40 percent to 67,400 won.
Defense stocks showed mixed performance amid lingering geopolitical demand. Hanwha Aerospace slid 9.15 percent to 1,301,000 won and Hyundai Rotem fell more than 10 percent to 222,000 won. LIG Nex1 bucked the trend, rising 10.89 percent to 733,000 won on expectations of stronger demand for its Cheongung-II air defense system, while Hanwha Systems gained 3.41 percent to 151,700 won.
Among heavyweight stocks, Samsung Electronics fell 2.56 percent to 190,100 won and SK Hynix declined 2.88 percent to 912,000 won. Hyundai Motor dropped 4.12 percent to 570,500 won, while affiliate Kia slid 4.99 percent to 173,200 won. LG Energy Solution declined 3.94 percent to 377,500 won and Samsung Biologics retreated 3.93 percent to 1,615,000 won.
Financial stocks also moved lower. KB Financial Group fell 4.63 percent to 146,400 won, Shinhan Financial Group slipped 4.65 percent and Mirae Asset Securities declined 5.56 percent to 62,900 won.
Entertainment stocks traded mixed, with HYBE down 4.73 percent and JYP Entertainment falling 5.22 percent, while YG Entertainment edged up 1.18 percent.
The Korean won opened 12.9 won weaker at 1,479.0 per dollar and briefly climbed to 1,482.20 before easing to 1,471.0 after the Bank of Korea said it would closely monitor excessive volatility and respond if necessary in coordination with the government. The currency later weakened again to around 1,481.90 as of 10:43 a.m.
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