KOSPI slips below 7,000 as external risks rattle investors

Korea's KOSPI index slipped below the 7,000 mark on Tuesday, as mounting geopolitical and trade tensions unsettled investor confidence. The benchmark KOSPI ended the day at 6,954.52, marking a 0.58 percent decline from the previous day's trading. Although the index opened 0.72 percent higher and briefly reached the 7,170 level during the day, it ultimately slipped more than 120 points in the afternoon, erasing its early gains.

Foreign and institutional investors bought 64.49 billion won and 64.96 billion won worth of shares, respectively, while retail investors sold off a net 3.05 trillion won, pulling the index down. Notable movements included a 0.56 percent rise in SK hynix, closing at 1,793,000 won, and a 0.19 percent drop in Samsung Electronics, settling at 269,500 won.

Initially buoyed by the previous session's gains, U.S. markets allowed the KOSPI to maintain its upward trajectory. However, the sentiment took a downturn due to tensions between the U.S. and Iran, with reports of an attack on Saudi Arabian oil facilities causing crude oil prices to surge. Additionally, escalating trade disputes between the U.S. and Canada further dampened investor sentiment. President Donald Trump's threats against Iran also added to the apprehension.