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28.09.202601:41:52UTC+00South Korean Shares Fall Amid Middle East Uncertainty

The benchmark KOSPI dropped nearly 2% to around 6,950 on Monday, erasing gains from the previous session as renewed tensions in the Middle East and rising oil prices dampened risk appetite. Brent crude climbed above $105 per barrel after the United States rejected Iran’s conditional proposal regarding the Strait of Hormuz. At the same time, a rise in US Treasury yields, with the 10-year yield nearing 5.17%, fueled concerns about tighter global financial conditions and the prospect of further rate hikes.

Heavyweight technology stocks led the decline, with Samsung Electronics and SK hynix falling nearly 4% and 5%, respectively. Other notable losers included SK Square (-6.8%), Samsung C&T (-4.2%), SK Inc. (-5.2%), and Hyosung Heavy Industries (-2.6%).

Losses were partly cushioned by optimism over semiconductor earnings. Samsung Electronics is expected to report more than KRW 100 trillion in operating profit for the third quarter, while business sentiment in the semiconductor sector has reached a record high for the fourth quarter.

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