News / Korea / yonhap_finance
KOSPI Plunges Over 2% Amid Escalating Middle East Tensions
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-02
000660, 005930, 009150, 010170, 036930, 068270, 086520, 105560, 196170, 247540, 257720, 277810, 373220, 402340
South Korean stocks fall sharply as rising oil prices and U.S. Treasury yields, driven by Middle East conflict, dampen investor sentiment.
What Happened
Market Downturn: The KOSPI index fell by more than 2% to the 6,600 level as geopolitical tensions in the Middle East intensified. Heavy selling pressure from foreign and institutional investors has been the primary driver of the decline.
External Pressures: The resumption of hostilities between the U.S. and Iran has triggered a spike in global oil prices and U.S. Treasury yields. Given South Korea's high reliance on oil imports, the local market has reacted with particular sensitivity to these macroeconomic headwinds.
Sector Performance: Major semiconductor stocks, including Samsung Electronics and SK Hynix, are leading the decline across most sectors. Despite the broad sell-off, ongoing share buybacks by corporate entities are providing a minor buffer against further losses.
Market Outlook: Analysts suggest that the burden of rising energy costs and interest rates will likely continue to weigh on the market. Investors are now closely watching for signs of bargain hunting and individual corporate earnings surprises to stabilize the index.