(URGENT) Seoul shares open nearly 5 pct lower on U.S. tech sell-off

Seoul shares experienced a significant drop of over 5 percent during late Wednesday morning trading, as investors sold off technology stocks amid rising bond yields and ongoing Middle Eastern geopolitical tensions. The Korea Composite Stock Price Index (KOSPI) fell by 5.5 percent, reaching 6,491.8 points by 11:20 a.m., after opening 4.96 percent lower.

Program trading for KOSPI-listed shares was suspended for five minutes following activation of a sell-side sidecar, which occurs when the KOSPI 200 Futures Index declines by 5 percent or more for at least a minute.

The decline in global markets was influenced by the lack of progress in U.S.-Iran peace talks, which negatively impacted investor sentiment and led to higher oil prices. The U.S. 30-year Treasury yield reached its highest level since 2007, driven by fears that increasing energy costs could fuel inflation. In Seoul, chipmakers played a significant role in the market downturn, with Samsung Electronics falling 7.08 percent and SK hynix declining 8.36 percent.

Other affected sectors included Hyundai Motor, which lost 5.17 percent, and SK Innovation, which dropped 0.76 percent. Hanwha Aerospace, however, saw a 2.97 percent increase after its U.S. unit secured a contract to supply K9 self-propelled howitzer prototypes to the U.S. Army. The Korean won strengthened to 1,406.3 per U.S. dollar by 11:20 a.m., up 0.27 won from the previous trading session's close.