South Korean Stocks Plunge Amid U.S. and Iran Military Conflict

South Korean stocks opened sharply lower on Wednesday as escalating military hostilities between the United States and Iran drove up oil prices and fueled global inflation concerns. The benchmark Korea Composite Stock Price Index (KOSPI) fell between 2.7 percent and 3.08 percent at the opening bell, according to various reports. By late Wednesday morning, the index continued to trade lower, falling 195.54 points or 2.86 percent to 6,640.26 as of 11:20 a.m.

The decline followed losses on Wall Street, where the Dow Jones Industrial Average fell 0.79 percent, the S&P 500 lost 0.71 percent, and the Nasdaq composite dropped 1.03 percent. Inflation worries also triggered a government bond selloff, pushing the benchmark 10 year U.S. Treasury yield to its highest level since January of last year.

In Seoul, major shares saw significant declines. Samsung Electronics tumbled between 2.97 percent and 3.26 percent, while SK hynix sank between 3.01 percent and 3.13 percent. Other notable losses included Hyundai Motor at 3.87 percent, Shinsegae at 6.08 percent, and HD Hyundai Heavy Industries at 5.08 percent. The Korean won was quoted at approximately 1,370 to 1,371 won against the U.S. dollar during the morning session.