Seoul stocks open sharply lower amid Mideast uncertainty

SEOUL, September 14 (Yonhap) -- As geopolitical tensions in the Middle East escalated, Seoul stocks faced a sharp decline on Monday, defying Wall Street's gains. The Korea Composite Stock Price Index (KOSPI), a key benchmark, plummeted 215.35 points, representing a 3.12% drop, reaching 6,694.56 at 9:16 a.m. local time.

In contrast, U.S. stocks saw an uptick on Friday when reports surfaced of potential discussions between Gulf diplomats and Iranian officials regarding the reopening of the Strait of Hormuz. However, the anticipation of the U.S.'s absence from the meeting dealt a blow to hopes of reopening the vital shipping route. The Omani foreign minister later announced that the meeting had been indefinitely postponed, further dampening expectations.

Major companies on the Seoul stock exchange also experienced significant losses. Samsung Electronics, a leading chip manufacturer, saw its shares drop by 3.37%, while SK hynix, another electronics giant, declined by 5.02%. Battery maker LG Energy Solution and Hyundai Motor, a prominent car producer, both witnessed a decline of 2.22% and 4.05% respectively. Despite the overall market downturn, defense company Hanwha Aerospace managed a slight gain of 1.39%.

The Korean won experienced a depreciation against the U.S. dollar, closing at 1,346.8 won, a 2.7 won decrease from the previous trading session.