South Korean shares fall more than 3% as Iran war escalates

Business Recorder, citing Reuters, said South Korean equities lost over 3% of their value on Wednesday. At 0158 GMT, the KOSPI had slid by 214.27 points, a 3.13% decline, to reach 6,621.53. Investors backed away as bond yields rose amid a widening clash between Washington and Tehran.

The sell-off followed another day of losses on US equities on Tuesday, when American air strikes on Iran prompted retaliation and crude prices jumped. Kiwoom Securities analyst Han Ji-young noted that investors have become more sensitive to swings in crude and debt yields. Consumer inflation in South Korea accelerated in August, but figures released on Wednesday showed it came in below expectations.

Among the index heavyweights, Samsung Electronics fell 3.26% and SK Hynix retreated 3.72%. LG Energy Solution, a battery producer, lost 3.81%, and Hyundai Motor shed 5.24% while Kia Corp declined 5.26%. Overseas investors sold a net 890.2 billion won ($649.8 million) of shares, and only 150 of 907 traded issues advanced.