31.08.202601:40:24UTC+00South Korean Shares Slide Amid Middle East Escalation

The benchmark KOSPI dropped more than 2% to around 6,640 on Monday, extending the previous session’s losses, as renewed US–Iran tensions stoked concerns over higher oil prices and a broader risk-off mood. US forces struck Iranian rocket launchers near the Strait of Hormuz, lifting Brent crude prices and weighing heavily on Asian equities.

At the same time, hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a September rate hike, pushing US Treasury yields higher and adding further pressure on risk assets, particularly technology stocks.

Firmer domestic fundamentals, however, provided some support. Facility investment in July rose 7.5% month-on-month, while output of electronic components surged 20.7%, underpinned by strong semiconductor demand.

Major decliners included Samsung Electronics (-2.7%), SK hynix (-3.5%), SK Square (-2.5%), Hanwha Aerospace (-1.4%), and Doosan Enerbility (-6.6%).