SEOUL, March 16 (AJP) — Asian stock markets traded lower Monday as investor sentiment remained fragile with the Iran war entering a third week and the Strait of Hormuz still effectively cut off, keeping energy and security risks at the center of regional trading.
Reports that President Donald Trump is pressing U.S. allies and major Asian importers to help reopen the waterway added to the sense of unease.
South Korea’s KOSPI swung from early gains into negative territory as bargain hunting in semiconductor heavyweights gave way to profit-taking, underscoring how quickly risk appetite can fade in a market dominated by a handful of large-cap names.
At the open, Samsung Electronics rose 0.93 percent and SK hynix gained 2.31 percent, helping lift the benchmark. Defense contractor Hanwha Aerospace and nuclear-related Doosan Enerbility also traded higher in early dealings, reflecting continued investor interest in sectors seen as beneficiaries of geopolitical tension and energy security concerns.
The Middle East remained the main external driver. In an interview reported Monday, Trump said countries that depend heavily on oil and gas shipments through Hormuz — including South Korea, Japan, China, Britain and France — should contribute to efforts to secure the strait, while also warning that further action against Iran’s Kharg Island export hub remained possible. Reuters and AP both reported that Washington is pushing partners to take a greater role in reopening the passage.
China, meanwhile, has called for a ceasefire and renewed diplomacy. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng began talks in Paris over the weekend, with the broader geopolitical backdrop likely to weigh on those discussions.
Japan is also coming under pressure ahead of Prime Minister Sanae Takaichi’s planned Washington trip this week, though Tokyo has said it is not currently planning an escort mission and that no formal U.S. request has yet been made. Takaichi said Japan is still reviewing its options within its legal framework.
The uncertainty weighed on regional equities.
In Tokyo, the Nikkei 225 traded at 53,777.47, down 0.08 percent. Hong Kong’s Hang Seng Index slipped 0.10 percent to 25,439.22, China’s Shanghai Composite fell 0.21 percent to 4,086.86, and Taiwan’s TAIEX lost 0.22 percent to 33,327.10.
As of 10:49 a.m., the KOSPI was down 0.03 percent at 5,485.74, while the tech-heavy KOSDAQ dropped 1.71 percent to 1,133.24.
Earlier in the session, the KOSPI had climbed as much as 1.11 percent to 5,548.04, lifted by gains in Samsung Electronics and SK hynix. Their growing dominance has become increasingly evident.
Samsung Electronics and SK hynix accounted for 38.3 percent of the KOSPI’s total market capitalization as of March 13, according to Korea Exchange data cited in local reporting, nearing the 40 percent threshold. That compares with 23.7 percent a year earlier, highlighting the benchmark’s growing concentration in semiconductor leaders. The combined weight of the top 10 listed companies also rose to 51.7 percent from 41.1 percent over the same period.
Analysts say the trend reflects expectations for a prolonged AI-driven semiconductor upcycle, as well as a defensive preference for large-cap exporters during periods of geopolitical stress.
FnGuide data show the three-month consensus target price for Samsung Electronics at around 251,720 won, implying significant upside from recent trading levels. FnGuide’s company guide also shows broker targets clustered well above current market prices.
In early trading, SK hynix rose 3.19 percent to 939,000 won and Samsung Electronics advanced 1.53 percent to 186,300 won.
The semiconductor sector’s prominence is also being reflected in the labor market. A Saramin survey of 2,304 adults released Monday showed SK hynix ranked as the most desirable large company to work for, overtaking Samsung Electronics for the first time since the survey began. Local reports said respondents cited the AI-led chip boom and strong compensation as key draws.
Defense and energy-linked names outperformed, with Hanwha Aerospace up 0.34 percent at 1,493,000 won and Doosan Enerbility rising 2.35 percent to 109,000 won.
Financial stocks were mixed. KB Financial added 1.81 percent to 151,600 won and Mirae Asset Securities gained 3.32 percent to 71,500 won, while Shinhan Financial edged down 0.11 percent to 90,700 won.
Among automakers, Kia was flat, Hyundai Motor fell 1.35 percent to 510,000 won, and Hyundai Mobis was little changed.
Biotech and platform shares were weaker, with Samsung Biologics down 1.19 percent to 1,573,000 won, Celltrion off 1.70 percent at 202,000 won, and NAVER losing 1.35 percent to 220,000 won.
Shipbuilding and heavy industry shares were mostly lower, with HD Hyundai Heavy Industries down 3.02 percent at 578,000 won, HD Hyundai Electric falling 1.51 percent to 915,000 won, and Hanwha Ocean retreating 2.19 percent to 133,900 won as core gas for shipbuilding cut off from Strait Hormuz suspension is expected to disrupt production activities.
Currency markets also reflected the nervous tone.
The won opened at 1,501.0 per dollar, marking the first breach of the 1,500 level in daytime trading since March 12, 2009, during the global financial crisis. It later pared some of those losses and was trading at 1,496.30 per dollar, compared with the previous session’s close of 1,493.40.
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