Korean Stocks Slide 2% in Pre-Market on U.S. Iran Strikes

South Korean stocks tumbled in pre-market trading after the United States launched military operations against Iran, rattling global markets.

As of 8:03 a.m. on June 3, the pre-market index fell 1.96%, according to Nextrade. Among top market-cap stocks, Samsung Electronics dropped 2.54% while SK Hynix declined 2.26%.

Other major stocks also traded lower: Hyundai Motor (-3.26%), LG Energy Solution (-3.28%), SK Square (-2.95%), Samsung Biologics (-2.25%), Kia (-3.31%), Doosan Enerbility (-2.92%), and HD Hyundai Heavy Industries (-1.33%).

U.S. markets overnight absorbed the heightened uncertainty with modest moves. The S&P 500 edged up 2.74 points (0.04%) to 6,881.62, while the Nasdaq Composite rose 80.65 points (0.36%) to 22,748.86. The Dow Jones Industrial Average slipped 73.14 points (0.15%) to 48,904.78.

Nvidia, the world's largest company by market capitalization, gained 2.99%, and Microsoft rose 1.48%, supporting the broader market. Energy stocks including Exxon Mobil (+1.13%) and Chevron (+1.52%) advanced on surging oil prices.

Asian markets fared worse. Japan's Nikkei index fell as much as 2.7% intraday before closing down 1.35%. Taiwan's TAIEX dropped 0.9%, and Hong Kong's Hang Seng Index declined more than 2%.

"Geopolitical uncertainty 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, war-related risks have had only short-term impacts on stock markets."