SEOUL, April 02 (AJP) -Asian stocks sank Thursday, with Seoul bearing the brunt after U.S. President Donald Trump’s primetime address on the Iran war failed to offer clarity on the endgame or a strategy to restore traffic through the Strait of Hormuz, a critical artery for global oil trade.
Japan’s Nikkei 225 fell 2.38 percent to 52,463.27, reversing earlier gains as selling accelerated in the afternoon. Hong Kong’s Hang Seng Index dropped 0.83 percent to 25,085.28, while China’s Shanghai Composite declined 0.74 percent to 3,919.29.
South Korea’s benchmark KOSPI tumbled 4.47 percent to 5,234.05, erasing most of the previous session’s rally. The tech-heavy KOSDAQ slid 5.36 percent to 1,056.34, with a sharp afternoon drop triggering a sell-side sidecar after simultaneous declines in KOSDAQ 150 futures and the underlying index at 2:34 p.m.
Despite declaring Iran’s military capabilities “neutralized,” Trump warned of potential large-scale attacks within two to three weeks. Markets, which had priced in a signal toward de-escalation, instead reacted to renewed uncertainty and the absence of a clear reopening timeline for Hormuz by unloading risk assets.
The reaction underscored Seoul’s vulnerability to energy shocks and external demand swings, given its heavy reliance on Middle East crude and export-driven tech sector.
Tech shares led the decline. Samsung Electronics fell 5.91 percent to 178,400 won, while SK hynix plunged 7.05 percent to 830,000 won. Samsung Electronics preferred shares dropped 6.98 percent to 118,600 won.
Automakers also retreated, with Hyundai Motor down 4.61 percent at 465,500 won, Kia falling 3.03 percent to 150,600 won, and Hyundai Mobis losing 4.77 percent to 389,500 won.
Battery and energy stocks were mixed. LG Energy Solution edged down 0.61 percent to 404,500 won and SK Square dropped 6.29 percent to 469,500 won, while Samsung SDI rose 2.55 percent to 443,000 won.
In biopharma, Samsung Biologics gained 0.83 percent to 1,585,000 won, while Celltrion fell 4.51 percent to 196,700 won.
Defense and heavy industry names showed divergence. Hanwha Aerospace surged 6.30 percent to 1,417,000 won, supported by expectations of prolonged geopolitical tension, while HD Hyundai Heavy Industries fell 2.77 percent to 439,000 won, Hanwha Ocean dropped 6.06 percent to 119,300 won, and Doosan Enerbility declined 6.02 percent to 93,600 won.
Financials were broadly weaker, with KB Financial down 1.21 percent to 146,500 won, Shinhan Financial slipping 1.71 percent to 91,700 won, Samsung Life falling 4.41 percent to 217,000 won, and Mirae Asset Securities plunging 7.51 percent to 61,600 won.
The Korean won weakened sharply, with the dollar rising to 1,515.90 won from 1,501.3 won, reflecting heightened risk aversion and dollar demand tied to energy imports.
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