Seoul shares turn lower late Fri. morning amid renewed Hormuz tensions

On Friday morning, Seoul shares experienced a decline as tensions in the Middle East, particularly around the Strait of Hormuz, increased investor unease. The Korea Composite Stock Price Index (KOSPI) fell 0.57 percent, closing at 6,260.31 points. This marked a significant drop from the previous day's 4.58 percent decline, largely driven by losses in the technology sector.

Globally, U.S. stocks, including the Dow Jones Industrial Average and the Nasdaq Composite, also experienced declines, highlighting the broader impact of the Hormuz tensions.

In response to the uncertainty surrounding potential agreements between the United States and Iran, Iran stated its intention to restrict access of U.S. and Israeli ships to the strategic waterway. The country proposed that any passage require compensation from hostile nations. This stance prompted investors to adjust their portfolios, with institutions buying stocks worth 423.3 billion won ($298 million) and foreign investors and individuals selling stocks amounting to 179.5 billion won and 223.1 billion won, respectively.

Notable declines among major companies included SK hynix, which dropped 4.01 percent, Hyundai Motor at 2.38 percent, and Lotte Shopping by 15.72 percent. The decline was also felt in the shipbuilding industry, with Hanwha Ocean falling 2.98 percent, and Hyundai Steel shedding 2.66 percent. However, some sectors saw gains, with Samsung Electronics rising 0.98 percent and defense company Hanwha Aerospace climbing 1.8 percent.

POSCO Holdings and Korea Aerospace Industries also saw positive movements, with gains of 2.51 percent and 4.6 percent, respectively.

Despite the overall market downturn, the Korean won strengthened against the U.S. dollar. As of 11:20 a.m., it traded at 1,419.45 won, marking a 4.65 won increase from the previous day's close.