Seoul stocks open sharply lower amid Mideast uncertainty

South Korean stocks plunged on Monday due to uncertainty in the Middle East, despite gains on Wall Street. The Korea Composite Stock Price Index (KOSPI) fell by 3.12 percent, reaching 6,694.56 points by 9:16 a.m. local time. On Friday (U.S. time), U.S. stocks had risen following reports that Gulf diplomats and Iran officials might meet to discuss reopening the Strait of Hormuz, without U.S. participation.

However, the Omani foreign minister later announced that the meeting was indefinitely suspended, casting doubt on the recovery of the vital shipping route. Most major Korean companies' stock prices dropped on Monday. Samsung Electronics fell 3.37 percent, while SK hynix declined 5.02 percent. Battery maker LG Energy Solution dropped 2.22 percent, and carmaker Hyundai Motor fell 4.05 percent.

Defense company Hanwha Aerospace, though, saw a 1.39 percent increase. The Korean won weakened to 1,346.8 won per U.S. dollar, down 2.7 won from the previous trading session.