Korean Stocks Drop on Iran War Impact, Dragged by Chipmakers

5iw{q5ai9yoxatgltm56z0t[_media_dl_1.png BloombergArticle content(Bloomberg) — South Korean stocks slumped as Middle East tensions stoked concern over the impact of rising energy costs, with risk-off sentiment sweeping across global markets.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe benchmark Kospi fell as much as 6.9%, the most since August 2024, as the market reopened after a holiday. Chip heavyweights Samsung Electronics Co. and SK Hynix Inc. dragged the gauge lower, dropping nearly 10% each.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentA prolonged war could be a major test of the world-beating rally in Korean equities, with the Kospi still up nearly 40% this year. Samsung and SK Hynix powered much of the gains on the back of surging global memory amid the artificial intelligence boom.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“An extended conflict involving Iran risks keeping crude prices elevated, reinforcing upside inflation risks and complicating the Federal Reserve’s path toward policy easing,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. “That macro backdrop is weighing on AI-linked equities, where stretched valuations are increasingly sensitive to shifts in rates and liquidity expectations.”Article contentAirline and automaker stocks also declined Tuesday. Defense contractors Hanwha Aerospace Co. and LIG Nex1 Co. climbed more than 20% each, and oil companies outperformed.Article contentMoves in Kospi futures briefly triggered a halt in program trading to help tamp down volatility. Foreign investors led selling, offloading more than 5 trillion won ($3.4 billion) worth of Kospi stocks on a net basis so far, while retail investors bought a similar amount.Article content“Some profit-taking can be expected” after the strong performance of Korean stocks this year, said Cameron Chui, an equity strategist at JPMorgan Private Bank. “Pullbacks represent buying opportunities provided that escalation in the Iran conflict remains manageable.”Article content—With assistance from Susie Kang.Article contentTrending Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining As East-West pipeline divide persists, Atlantic Canada's energy isolation is only getting worse Oil & Gas Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement Saudis pulled deeper into Middle East war after refinery attack Energy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Shocks can force Bank of Canada to hike rates even when economy weak, says deputy Economy PDAC 2026: Hodgson says Canada's mining sector is at a 'hinge moment' while announcing new critical minerals projects Mining As East-West pipeline divide persists, Atlantic Canada's energy isolation is only getting worse Oil & Gas Garry Marr: Bad news, Gen Z — The Freedom 55 guy is still working in his 60s and you will be, too Retirement Saudis pulled deeper into Middle East war after refinery attack Energy