SEOUL, March 03 (AJP) - Asian markets extended losses while Korean market took the biggest fall Tuesday as rising tensions between the United States, Israel and Iran pushed oil prices higher and kept regional risk sentiment fragile.
Brent crude climbed to $80.35 per barrel, up from $77.7 a day ago, as concerns grew over potential disruptions through the Strait of Hormuz, a vital corridor for global energy shipments. The waterway accounts for roughly one-fifth of global seaborne crude flows, much of which is bound for Asia.
Korea Leads Regional Declines
Korea bore the brunt of the selloff after reopening from a holiday. The benchmark KOSPI fell 7.24 percent to 5,791.9, swinging between a high of 6,180.5 and a low of 5,791.7 before closing near session lows.
The drop marked the first decline of more than 7 percent since Aug. 5, 2024. When the index plunged 8.77 percent on Tuesday, it was pushed back toward levels last seen on Feb. 19, when it closed at 5,677.25. Trading turnover reached 52.5 trillion won ($35.7 billion).
Losses were broad-based, with decliners far outnumbering advancers. Foreign investors sold 5.15 trillion won worth of shares, while institutions offloaded 886.3 billion won. Retail investors stepped in with purchases of 5.8 trillion won, partially absorbing the pressure.
The tech-heavy KOSDAQ dropped 4.6 percent to 1,137.7, though foreign and institutional buying provided relative support compared with the main board.
Heavyweight exporters retreated sharply. Samsung Electronics fell 9.9 percent to 195,100 won, and SK hynix declined 11.5 percent to 939,000 won, reversing part of their recent rally. Automakers were among the steepest decliners, with Hyundai Motor sliding 11.7 percent and Kia losing 11.3 percent. LG Energy Solution fell 8 percent, tracking weakness across growth-oriented names.
Industrial and biopharma shares also softened, with Samsung Biologics down 5.5 percent and Doosan Enerbility retreating 8.8 percent.
In contrast, defense and shipping names stood out as clear gainers. Hanwha Aerospace surged 19.8 percent, while the broader aerospace and defense sector advanced 17 percent. Shipping shares climbed 15.7 percent, reflecting expectations of tighter freight conditions amid geopolitical uncertainty.
The Korean won weakened to 1,469.3 per dollar, underscoring external pressure as energy import costs rise.
Japan, China Follow Lower
Japan’s Nikkei 225 fell 3.1 percent to 56,279.1, while the broader TOPIX declined 3.24 percent, as export-oriented sectors tracked global risk aversion.
Losses were more moderate in Greater China. Hong Kong’s Hang Seng Index slipped 1.1 percent, and the Shanghai Composite eased 1.5 percent, as policy expectations helped temper the broader downturn.
Safe-Haven Assets Gain Ground
Gold rose 1.2 percent to $5,311.6 per troy ounce, extending gains as investors shifted toward defensive assets. Bitcoin traded around $68,220 after volatile swings earlier in the session.
With oil prices holding above $80 and currencies under pressure, markets across Asia remained sensitive to developments in the Middle East, leaving volatility elevated heading into upcoming U.S. economic data releases.
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