South Korean shares fall more than 4% on renewed US-Iran tensions

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell more than 4% on Wednesday, as worries mounted over rising hostilities in the Middle East.

The benchmark KOSPI closed down 366.11 points, or 4.52%, at 7,730.82. On Tuesday, it rose 8.2%, after falling 8.3% the day before.

During the session on Wednesday, the index fell as much as 6.86%, triggering a “sidecar” trading curb.

The U.S. on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down a U.S. Apache helicopter in the Strait of Hormuz, deepening doubts over a potential peace deal and further straining a fragile ceasefire.

South Korea’s finance minister agreed with other top economic policymakers to closely monitor risk around increased volatility in financial markets and its impact on various sectors, the ministry said.

Among index heavyweights, chipmaker Samsung Electronics fell 6.06%, while peer SK Hynix lost 7.54%. Battery maker LG Energy Solution slid 2.77%.

Hyundai Motor and sister automaker Kia Corp were down 5.79% and down 2.80%, respectively.

Steelmaker POSCO Holdings shed 0.41%, while drugmaker Samsung BioLogics rose 0.15%.

Of the total 921 traded issues, 343 shares advanced, while 550 declined.

Foreigners were net sellers of shares worth 2.8 trillion won ($1.84 billion).

The won was quoted at 1,524.2 per dollar on the onshore settlement platform, 0.56% higher than its previous close at 1,532.7.

In money and debt markets, June futures on three-year treasury bonds gained 0.12 point to 103.13.

The most liquid three-year Korean treasury bond yield fell by 1.9 basis points to 3.886%, while the benchmark 10-year yield fell by 0.4 basis point to 4.268%.