(LEAD) Seoul stocks open sharply lower amid escalating hostilities in Mideast

Seoul's financial markets commenced their trading day on a decidedly gloomy note on Wednesday, as the city's key stock index mirrored the downward trend observed on Wall Street, in the aftermath of escalating hostilities between the United States and Iran. The Korea Composite Stock Price Index, a barometer of South Korea's economic health, sank by 184.73 points, or 2.7 percent, to 6,651.07 at 9:15 a.m. local time.

The downturn was primarily attributed to the recent escalation of military attacks between the two nations, which had a spillover effect on global oil prices. On the previous trading day, major U.S. stocks had ended with a loss, reflecting growing concerns over inflation in the world's largest economy. This inflationary pressure had triggered a sell-off in government bonds, leading to a rise in the benchmark 10-year U.S. Treasury yield, which had reached its highest level since January of the previous year.

The losses were mirrored across various sectors in Seoul. Samsung Electronics, a market heavyweight, witnessed a 3.26 percent decline, while its rival chipmaker, SK hynix, fell by 3.01 percent. Hyundai Motor, a leading automaker, saw a 3.87 percent drop, and energy firm Doosan Enerbility slumped by 3.32 percent. Even retail giant Shinsegae and pharmaceutical firm Samsung Biologics experienced significant losses, with declines of 6.08 percent and 1.32 percent, respectively.

In foreign exchange markets, the Korean won strengthened slightly against the U.S. dollar, with the rate quoted at 1,371.05 won per dollar, up from the previous session's close of 1,368.80 won.