Seoul stocks fell sharply Thursday, as US President Donald Trump's renewed threat of strikes against Iran rattled investor sentiment and pushed up global oil prices. The Korean won weakened against the US dollar.
The benchmark Korea Composite Stock Price Index fell 244.65 points, or 4.47 percent, to 5,234.05.
The index opened more than 1 percent higher, tracking overnight gains on Wall Street, amid hopes for an end to the monthlong war in the Middle East, which began in late February following US-Israeli strikes on Iran.
But it turned negative and came under heavy downward pressure after Trump said in a prime-time address earlier in the day that the United States would hit Iran "extremely hard over the next two to three weeks" and "bring them back to the Stone Age," while warning that Iranian energy facilities could be targeted if a deal is not reached.
The renewed uncertainty pushed up global oil prices, with Brent crude jumping more than 4 percent to well over $100 a barrel.
The Korea Exchange, the country's main bourse operator, activated a sell-side sidecar at around 2:46 p.m., temporarily halting program-driven sell orders in Kospi futures for five minutes.
"Despite earlier remarks by US and Iranian leaders suggesting the possibility of an end to the conflict, Trump's latest message indicating the war could continue disappointed investors," Kang Jin-hyuk, an analyst from Shinhan Securities, said. "Risk-off sentiment is strengthening as expectations for a ceasefire fade." (Yonhap)
