Seoul stocks down over 1 pc amid renewed Iran tensions

Seoul, May 28 (IANS) South Korean stocks were trading more than 1 per cent lower late on Thursday as foreign investors unloaded local shares following a recent tech-led rally and news that the United States launched new strikes against Iran.

The benchmark Korea Composite Stock Price Index (KOSPI) had fallen 84.32 points, or 1.02 percent, to 8,144.38 as of 11:20 a.m, reports Yonhap news agency.

The index closed at a record high of 8,288.7 on Wednesday, extending its winning streak to the fourth consecutive session on the back of a strong rally led by major semiconductor shares, including Samsung Electronics and SK hynix. The landmark 8,000-point feat was achieved Tuesday.

The KOSPI, however, started weak as blue chip shares took a breather after their recent rally on news that the U.S. carried out strikes targeting an Iranian military site, dampening hopes for an imminent peace deal between the two sides.

Overnight, major U.S. indexes closed at record highs over prospects that the war between the U.S. and Iran is nearing an end after an Iranian media company reported a draft interim deal between the two sides, which included the reopening of the Strait of Hormuz.

The Dow Jones Industrial Average rose 0.36 percent, the tech-heavy Nasdaq composite edged up 0.07 percent, and the S&P 500 gained 0.02 percent.

In Seoul, market top-cap Samsung Electronics dipped 2.12 percent, while its chipmaking rival SK hynix added 0.62 percent. AI investment firm SK Square dropped 2.51 percent.

Major shipbuilders were weak, with HD Hyundai Heavy sliding 4.44 percent and Hanwha Ocean plunging 7.78 percent.

Defence giant Hanwha Aerospace retreated 3.38 percent, and power plant manufacturer Doosan Enerbility contracted 2.4 percent.

Financial shares were also trading in negative territory, with KB Financial down 2.67 percent and Shinhan Financial losing 2.32 percent.

On the other hand, battery and auto shares were strong.

Leading battery maker LG Energy Solution surged 14.34 percent on news that it clinched a deal to supply energy storage system batteries to a U.S. firm, and its smaller rival Samsung SDI jumped 7.14 percent.

Top automaker Hyundai Motor gained 1.17 percent, its sister Kia added 0.55 percent, and its auto parts-making affiliate Hyundai Mobis rose 0.73 percent.

Samsung Electro-Mechanics climbed 4.91 percent.

The Korean won was trading at 1,506.5 won against the U.S. dollar at 11:20 a.m., down 5.3 won from the previous session.

—IANS

na/