South Korean stocks took a sharp dip on Wednesday following reports of new U.S. strikes on Iran and tech losses on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) opened 2.43 percent lower and fell by 1.56 percent to 7,970.95 in the initial 15 minutes of trading.
Investor confidence was impacted by U.S. strikes on Iran in response to the downing of an American Apache helicopter in the Strait of Hormuz. Additionally, concerns over the valuation of AI-related stocks resurfaced due to Broadcom’s disappointing earnings forecast and Crusoe Energy Systems suspending a project at the request of a major tech client.
Tech-heavy Nasdaq composite closed down by 0.97 percent, S&P 500 dropped by 0.26 percent, and Dow Jones Industrial Average rose by 0.17 percent. Major tech shares like Broadcom, Apple, Micron, and Nvidia experienced declines.
In Seoul, Samsung Electronics started 2.8 percent lower, in line with U.S. tech losses, while SK hynix, an industry competitor, dropped by 2.08 percent. Other companies like SK Square, Samsung Electro-Mechanics, Samsung Life Insurance, and Samsung C&T also saw declines in their stock values.
LG Electronics and Naver witnessed significant drops, while Hyundai Motor, Hyundai Mobis, and LG Energy Solution experienced mixed results. Samsung SDI, another battery maker, saw a decrease in its stock value. Defence company Hanwha Aerospace, however, surged by 4.04 percent.
The Korean won was trading at 1,516 won against the U.S. dollar at 9:15 a.m., down by 3.9 won from the previous session.
