South Korean shares fall over 1% as Middle East conflict escalates

South Korean stocks experienced a decline of over 1% on Thursday due to growing concerns over Middle East tensions, according to financial market reports. The benchmark KOSPI index fell 96.61 points, or 1.37%, reaching a value of 6,955.03 as of 0058 GMT. This decline was primarily driven by significant losses reported by key companies such as Samsung Electronics, which dropped 1.67%, and SK Hynix, which saw a decrease of 1.35%.

Other notable declines included LG Energy Solution (0.81%) and Hyundai Motor (0.77%) among others. The overall impact was widespread, with 197 shares advancing while 666 declined. The won, South Korea's currency, remained relatively stable against the dollar, trading at 1,339.3 per dollar onshore and 1,337.8 offshore, showing a slight increase of 0.1% in offshore markets.

Foreign investors were net sellers, offloading shares worth 219.3 billion won ($163.94 million). Despite the market downturn, the KOSPI has shown resilience this year, rising by 65.04%, while the won has strengthened by 7.5% against the dollar. Meanwhile, money and debt markets also reflected the uncertainty, with three-year treasury bond futures falling by 0.07 point to 102.97.

The yield on the most liquid three-year Korean treasury bond increased by 3.0 basis points to 3.936%, while the benchmark 10-year yield rose by 5.3 basis points to 4.443%.