SEOUL, March 06 (AJP) - Asian markets finishing the first week of a new war became muddled Friday amid mixed messages from Washington and the battlefields in the Middle East about how long the conflict could continue and how large the impact on the global economy.
Overnight, U.S. equities returned to declines as geopolitical risks surrounding the Iran conflict weighed on investor confidence. The Dow Jones Industrial Average fell 1.61 percent to 47,954.74, while the S&P 500 slipped 0.56 percent to 6,830.71. The tech-heavy Nasdaq Composite declined 0.26 percent to 22,748.99.
Security concerns around one of the world’s most critical energy shipping routes also weighed on sentiment. Reports of tanker attacks near the Strait of Hormuz heightened fears about the safety of oil shipments through the Gulf, where hundreds of vessels carrying crude oil and liquefied natural gas are reportedly waiting for safe passage.
Political uncertainty in Iran added to investor caution. Reports indicated that clerics responsible for selecting the country’s next supreme leader are considering Mojtaba Khamenei, the son of the late Ayatollah Ali Khamenei, as a potential successor, raising questions about the direction of Iran’s leadership following the conflict.
Across Asia, markets showed diverging performances. Japan’s Nikkei 225 slipped 0.8 percent to around 54,860, while China’s Shanghai Composite Index edged up 0.6 percent to 4,108.6 as investors selectively bought recently weakened technology shares.
In Seoul, the benchmark KOSPI briefly rebounded around 9:23 a.m. before turning lower again from about 9:30 a.m. As of 10:30 a.m., the index was down 2.6 percent at 5,437.1. The tech-heavy KOSDAQ also reversed early gains, falling 0.8 percent to 1,107.3 after touching an intraday high of 1,118.01 at around 10:16 a.m.
Trading activity remained brisk, with turnover reaching about 14.3 trillion won ($9.7 billion) on the KOSPI and 7.1 trillion won on the KOSDAQ.
Investor flows showed strong retail buying against persistent foreign selling pressure. On the main board, individual investors purchased 1.96 trillion won worth of shares, while institutions and foreigners sold 639.5 billion won and 1.34 trillion won, respectively.
On the KOSDAQ, individuals and institutions were net buyers of 82.7 billion won and 93.3 billion won, while foreigners sold 176.7 billion won.
Major blue chips traded lower. Samsung Electronics fell 4.9 percent to 182,200 won, while SK Hynix dropped 5.3 percent to 892,000 won.
Automakers also declined, with Hyundai Motor down 2.6 percent at 534,000 won and Kia falling 2.5 percent to 162,300 won. Battery maker LG Energy Solution slipped 1.5 percent to 366,000 won, while biotech heavyweight Samsung Biologics declined 2.9 percent to 1.6 million won.
Defense-related shares bucked the broader market trend on expectations of sustained global demand amid geopolitical tensions. LIG Nex1 surged 10 percent to 834,000 won, while Hanwha Systems gained 7.2 percent to 161,300 won and Hanwha Aerospace advanced 3.3 percent to 1,428,000 won.
The dollar weakened globally, trading at 1,473.30 won.
Copyright ⓒ Aju Press All rights reserved.
