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South Korean Shares Slide Amid Middle East Escalation

The benchmark KOSPI fell more than 2% to around 6,640 on Monday, extending losses from the previous session, as renewed US-Iran tensions fueled concerns over higher oil prices and broader risk-off sentiment. US forces struck Iranian rocket launchers near the Strait of Hormuz, pushing Brent crude higher and weighing heavily on Asian equities. At the same time, hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations for a September rate hike, pushing US Treasury yields higher and adding pressure on risk assets, particularly technology shares. Meanwhile, stronger domestic fundamentals offered some cushion, with July facility investment rising 7.5% month-on-month and electronic-component output jumping 20.7%, supported by robust semiconductor demand. Among major decliners were Samsung Electronics (-2.7%), SK hynix (-3.5%), SK Square (-2.5%), Hanwha Aerospace (-1.4%), and Doosan Enerbility (-6.6%).

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