South Korean Shares Fall on Middle East Escalation

2026-09-01 01:39 By Erika Ordonez 1 min. read

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.



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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.
2026-09-01
South Korean Shares Close Higher
The benchmark KOSPI rose 0.46% to close at 6,820 on Monday, reversing part of the previous session's losses as Samsung Electronics and SK hynix rebounded, alongside gains across other large-cap stocks. Samsung Electronics increased 1.17% and SK hynix advanced 1.27%, while SK Square (0.88%), Hyundai Motor (1.00%), LG Energy Solution (2.16%), KB Financial Group (0.99%), and Kia Corporation (2.34%) also posted gains. The market also remained supported by expectations for another month of strong semiconductor-led export growth, with August shipments forecast to rise more than 60% year-on-year. The KOSPI was on course for a gain of over 3% for the month of August. Meanwhile, renewed concerns over US interest rates following hawkish comments from Federal Reserve Chair Kevin Warsh kept investors cautious. At the same time, escalating Middle East tensions following renewed US strikes near the Strait of Hormuz added to risk concerns.
2026-08-31
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%).
2026-08-31