Korean Stocks Fall, Global Tech and US-Iran Conflict Still Weighing on Markets

South Korean stock exchange weakened ahead of noon, Thursday. The market was pressured by global technology stock turmoil and increasing US-Iran tensions.

Yonhap quoted Thursday, June 11, reported that the Korea Composite Stock Price Index or KOSPI benchmark index fell 124.91 points or 1.62 percent to 7,605.91 at 11.20 local time. At the start of trading, the index had fallen nearly 3 percent.

Pressure from Wall Street dragged down the Seoul market. Last night, the Dow Jones Industrial Average fell 1.87 percent. The S&P 500 weakened 1.62 percent. The Nasdaq Composite, an index filled with technology stocks, fell 1.98 percent.

Investors are selling technology stocks because they are worried that the valuation of artificial intelligence (AI) stocks is too high. Nvidia fell 3.73 percent, Broadcom fell 5.12 percent, Super Micro Computer fell 28 percent, and AMD fell 4.86 percent.

Markets were also rattled by news of additional US strikes against Iran. Tensions rose after Iran threatened to shoot at ships trying to cross the Strait of Hormuz, a vital route for world energy trade.

The situation has raised concerns that a full-scale war between the US and Iran could break out again.

US inflation data had been a positive factor. The US Consumer Price Index for May was lower than expected. However, according to Mirae Asset Securities analyst Seo Sang-young, the data is not enough to ease market concerns about the possibility of the US Federal Reserve taking a tighter policy stance.

In Seoul, Samsung Electronics shares fell 1.49 percent. However, its rival in the chip sector, SK hynix, rose 0.63 percent.

Samsung Electro-Mechanics fell 3.38 percent, while SK Group weakened 2.76 percent.

Automotive shares were also pressured. Hyundai Motor fell 4.32 percent, Kia weakened 5.51 percent, and Hyundai Mobis fell 4.04 percent.

In the battery sector, LG Energy Solution fell 1.69 percent. Samsung SDI fell 3.42 percent.

Doosan Enerbility fell 5.38 percent, while Hanwha Aerospace dropped 5.43 percent.

According to Yonhap, the Korean won was trading at 1,528 won per US dollar at 11:20 local time. The currency weakened 3.8 won from the previous session.