KOSPI Falls Below 6,100 as U.S. Strikes on Iran Rattle Markets

South Korean stocks tumbled more than 1% on Friday as the U.S. military operation against Iran heightened geopolitical tensions and rattled global markets.

The KOSPI index opened at 6,165.15, down 78.98 points or 1.26% from the previous session, according to the Korea Exchange. The tech-heavy KOSDAQ fell 22.96 points or 1.92% to open at 1,169.82. As of 9:38 a.m., the KOSPI was down 1.50% while the KOSDAQ declined 1.21%. The KOSPI briefly plunged more than 2%, hitting 6,081.92 and breaching the 6,100 level.

Large-cap stocks fell broadly. Samsung Electronics and SK hynix, the two heavyweights of the Korean market, dropped 2.77% and 3.11% respectively. Hyundai Motor fell 4.75%, LG Energy Solution declined 2.58%, SK Square lost 3.88%, Samsung Biologics shed 2.76%, Kia tumbled 6.08%, and Doosan Enerbility slipped 2.26%. On the KOSDAQ, EcoPro fell 4.43%, Alteogen dropped 2.45%, EcoPro BM lost 2.93%, Samchundang Pharmaceutical declined 3.15%, and Rainbow Robotics shed 4.30%.

Wall Street absorbed the elevated uncertainty overnight. The S&P 500 edged up 2.74 points or 0.04% to close at 6,881.62, while the Nasdaq Composite gained 80.65 points or 0.36% to finish at 22,748.86. The Dow Jones Industrial Average dipped 73.14 points or 0.15% to 48,904.78, posting a modest decline. Nvidia, the largest company by market capitalization, rose 2.99%, and Microsoft gained 1.48%, helping to support the market. Energy giants Exxon Mobil and Chevron climbed 1.13% and 1.52% respectively, buoyed by surging crude oil prices.

Asian markets, however, mostly declined. Japan's Nikkei index fell as much as 2.7% intraday before paring losses to close down 1.35%. Taiwan's TAIEX dropped 0.9%, and Hong Kong's Hang Seng Index fell more than 2%. Analysts noted that Asian markets, more vulnerable to volatility than U.S. markets, bore the brunt of the heightened geopolitical risks.

Whether the market correction will persist remains uncertain. "Geopolitical uncertainty stemming from the Middle East is expected to increase market volatility," said Han Ji-young, a researcher at Kiwoom Securities. "However, it's worth noting that historically, the impact of war-related risks on stock markets has been short-lived."