Seoul: South Korean stocks opened lower Thursday as a rally led by artificial intelligence (AI) took a breather amid increased tensions following the U.S. launching fresh strikes against Iran. The benchmark Korea Composite Stock Price Index (KOSPI) fell 113.09 points, or 1.37 percent, to 8,115.61 in the first 15 minutes of trading.
According to Yonhap News Agency, the index had closed at a record high of 8,288.7 on Wednesday, marking the fourth consecutive session of gains driven by a robust rally in major semiconductor stocks, such as Samsung Electronics and SK hynix. The landmark 8,000-point achievement was realized on Tuesday. However, the KOSPI started on a weak note as blue-chip shares paused their rally and news emerged of the U.S. targeting an Iranian military site, which dampened hopes for an imminent peace deal between the two nations.
Overnight, major U.S. indices closed at record highs over optimism that the conflict between the U.S. and Iran might be nearing resolution. This was after an Iranian media outlet reported a draft interim agreement between the two sides, which suggested the reopening of the Strait of Hormuz. The Dow Jones Industrial Average rose 0.36 percent, the tech-heavy Nasdaq composite edged up 0.07 percent, and the S and P 500 gained 0.02 percent.
In Seoul, market leader Samsung Electronics saw a decline of 1.87 percent, and its semiconductor competitor SK hynix dropped 2.45 percent. AI investment firm SK Square experienced a slide of 3.37 percent. Major shipbuilders also started weak, with HD Hyundai Heavy losing 2.15 percent and Hanwha Ocean plummeting 6.45 percent. Defense giant Hanwha Aerospace retreated 3.46 percent.
Conversely, battery and automotive shares showed strength. Leading battery maker LG Energy Solution surged 12.65 percent, while smaller rival Samsung SDI rose 3.97 percent. Top automaker Hyundai Motor gained 2.35 percent, its sister company Kia added 2.61 percent, and auto parts affiliate Hyundai Mobis jumped 4.36 percent. Samsung Electro-Mechanics also increased by 2.02 percent.
The Korean won was trading at 1,505.4 against the U.S. dollar at 9:15 a.m., down 4.2 won from the previous session.