Seoul stocks plunged by more than 3 percent Thursday amid uncertainties surrounding U.S.-Iran negotiations, which have raised concerns among investors about potential geopolitical tensions and market volatility.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 84.08 points to close at 2,650.13, marking its largest daily decline in several weeks. A sharp sell-off was observed across various sectors, with financial, technology, and manufacturing companies facing significant losses.
Investors reacted negatively to reports of stalled discussions between the United States and Iran regarding a possible nuclear deal and tensions in the Middle East. Concerns over rising oil prices, which could be exacerbated by renewed sanctions or military conflicts, have further unsettled the market.
“The uncertainty surrounding the U.S.-Iran talks has created a risk-off sentiment among investors,” said an analyst at a local brokerage. “Market participants are worried about how these developments could affect global markets and economic recovery.”
Foreign investors also contributed to the market decline by selling off shares, intensifying the downward pressure. Data showed that foreign investors were net sellers for the third consecutive day, further amplifying the bearish sentiment.
In the technology sector, major companies such as Samsung Electronics and SK Hynix faced steep declines, with investors cautious about their earnings outlook amidst global supply chain disruptions and fluctuating demand for semiconductors.
The financial sector was not spared either, with major banks and insurance companies recording sizable losses. Analysts predict that ongoing geopolitical concerns and domestic economic challenges will continue to weigh on investor sentiment in the near term.
As the Seoul market grapples with these uncertainties, analysts urge investors to stay vigilant and consider diversifying their portfolios to mitigate risks associated with market volatility.