South Korean stocks opened sharply lower on Friday amid heightened risk-off sentiment from renewed Middle East tensions. The KOSPI benchmark fell 3.74% to 5,256.46 in the first 20 minutes of trading. Uncertainty in U.S.-Iran negotiations fueled the decline.
South Korean stocks opened sharply lower on March 27, with the benchmark Korea Composite Stock Price Index (KOSPI) dropping 204 points, or 3.74%, to 5,256.46 in the first 20 minutes of trading after an initial 2.93% decline, according to Yonhap News Agency and The Korea Times. The sell-off followed sharp overnight drops in U.S. markets, driven by mixed signals from U.S. President Donald Trump on negotiations with Iran. Trump warned Iranian negotiators on Thursday local time that they had better “get serious soon, before it is too late,” before stating that the U.S. and Iran were having very “substantial talks.” The White House announced an extension of its pause on strikes against Iranian power plants and energy infrastructure until April 6. The S&P 500 fell 1.74% and the Nasdaq retreated 2.38%. In Seoul, large-cap stocks traded lower across the board: Samsung Electronics fell 3.72%, SK hynix 4.82%, Hyundai Motor 3.98%, Hanwha Aerospace 4.38%, and KB Financial 3.35%. The Korean won traded at 1,511.5 against the U.S. dollar as of 9:20 a.m., down 4.5 won from the previous session. The KOSPI had closed down 3.22% on March 26 amid similar uncertainties.
