South Korean Shares Fall on Middle East Escalation

The benchmark KOSPI edged down to around 6,800 on Tuesday, reversing gains from the previous session, as renewed US-Iran military clashes weighed on investor sentiment and pushed oil prices higher. The escalation raised concerns over renewed inflationary pressures and tighter global monetary policy, while losses on Wall Street added to the pressure on Korean equities. Among major decliners were Samsung Electronics (-0.3%), Hyundai Motor (-1.1%), Hanwha Aerospace (-3.3%), KB Financial Group (-1.4%), and Doosan Enerbility (-1.8%). Meanwhile, strong domestic trade data offered some support to the market outlook, as South Korea’s exports jumped 68.7% year-on-year to $98.25 billion in August, marking the 15th consecutive month of growth. Semiconductor exports surged 209% to $46.65 billion, driven by continued AI infrastructure spending by major technology companies, reinforcing expectations for solid earnings among Korea’s major semiconductor companies.





