Korean stocks opened lower as Middle East tensions intensified, with reports that the United States is considering a large-scale attack on Iran. The KOSPI gave up the 7,000 level it had reclaimed in the previous session, while shares of major companies including Samsung Electronics (005930.KS) and SK hynix (000660.KS) declined.
According to the Korea Exchange, as of 9:15 a.m. on the 24th, the KOSPI stood at 6,886.56, down 210.33 points, or 2.96%, from the previous session. The KOSPI had closed at 7,096.89 on the 23rd, up 4.40%, but opened weak and fell below the 7,000 level. Most top market-cap stocks were falling, including Samsung Electronics (2.96%), SK hynix (3.60%) and SK Square (6.06%).
Overnight in New York, the three major indexes all declined. The Dow Jones Industrial Average fell 0.97% from the prior session, the Standard & Poor's 500 dropped 1.21% and the Nasdaq slid 2.15%. Investor sentiment worsened as reports of escalating Middle East tensions continued to emerge, while doubts about the sustainability of the artificial intelligence (AI) investment that has driven the market rally remained unresolved. U.S. President Donald Trump said in an interview with a local media outlet that he was "considering a large-scale attack" on Iran.
Concerns about further oil price increases also remained. Yemen's pro-Iran Houthi rebels declared a Red Sea blockade targeting Saudi Arabia and said they were responsible for the previous day's air strikes on two Saudi Arabian oil tankers. With passage through the Strait of Hormuz effectively halted, concerns have grown that a blockade of nearby straits as well would severely damage the Middle East crude oil supply chain.
Han Ji-young, a researcher at Kiwoom Securities, said, "Korean stocks are expected to open lower due to expanded U.S.-Iran geopolitical uncertainty and the fallout from the sharp drop in U.S. markets, but downside rigidity centered on semiconductors will form during the session and narrow the losses." She added, "As we have entered the second-quarter earnings season, this could be a period where individual earnings momentum can be generated."
