Seoul stocks open sharply lower on renewed Mideast tensions
Seoul, March 27 (IANS) South Korean stocks opened sharply lower on Friday on increased risk-off sentiment following renewed concerns over tensions in the Middle East. After opening 2.93 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 204 points, or 3.74 percent, to 5,256.46 in the first 20 minutes of trading, reports Yonhap news agency. Overnight, U.S. markets suffered a sharp drop, as U.S. President Donald Trump gave mixed signals about where Washington stands in its negotiations with Iran. Trump warned Iranian negotiators on Thursday (local time) they "better get serious soon, before it is too late," only to later say that the U.S. and Iran are having very "substantial talks." The White House also announced it will extend a pause on strikes on Iranian power plants and energy infrastructure until April 6. The S&P500 fell 1.74 percent while the tech-heavy Nasdaq retreated 2.38 percent. In Seoul, large-cap shares were trading lower across the board. Chip giant Samsung Electronics fell 3.72 percent, while its rival SK hynix retreated 4.82 percent. Top carmaker Hyundai Motor dipped 3.98 percent, defence giant Hanwha Aerospace moved down 4.38 percent, and major financial group KB Financial shed 3.35 percent. The Korean won was trading at 1,511.5 won against the U.S. dollar, down 4.5 won from the previous session, as of 9:20 a.m. Meanwhile, Industry Minister Kim Jung-kwan on Friday called for private sector cooperation to help stabilise industrial supply chains and manage energy demands amid persisting turmoil in the Middle East, his office said. In a meeting with major business associations, Kim urged companies to step up efforts to secure alternative supply sources and refrain from disruptive actions, such as collusion and hoarding, according to the Ministry of Trade, Industry and Resources. The meeting was attended by senior officials from six business associations, including the Korea Chamber of Commerce and Industry and the Federation of Middle Market Enterprises of Korea. Kim also called for voluntary participation by private companies in a five-day vehicle rotation system and other energy-saving measures. —IANS na/
