Global Market: South Korean stocks fall over 1% as Middle East tensions weigh on risk sentiment

South Korean shares fell more than 1% on Thursday as escalating tensions in the Middle East dampened investor risk appetite and triggered selling across major sectors, Reuters reported.

The benchmark KOSPI fell 96.61 points, or 1.37%, to 6,955.03 as of 0058 GMT, according to Reuters.

The decline came after Iran said on Wednesday that it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers. The developments marked the biggest wave of attacks on shipping by both sides since the six-month-old war began, Reuters reported.

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Samsung Electronics, SK Hynix fall

Technology stocks were among the major decliners. Samsung Electronics fell 1.67%, while rival SK Hynix dropped 1.35%.

Other heavyweight stocks also traded lower. LG Energy Solution declined 0.81%, while Hyundai Motor and Kia Corp fell 0.77% and 0.39%, respectively.

POSCO Holdings slipped 0.30%, while Samsung BioLogics declined 1.72%.

Of the 906 stocks traded on the South Korean exchange, 197 advanced and 666 declined, indicating broad-based selling pressure.

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Foreign investors were net sellers of South Korean shares worth 219.3 billion won ($163.94 million), Reuters reported.

South Korean won, bond yields

The South Korean won was quoted at 1,339.3 per dollar on the onshore settlement platform, strengthening 0.07% from its previous close of 1,340.2.

In offshore trading, the won was quoted at 1,337.8 per dollar, up 0.1% on the day. Its one-month non-deliverable forward contract was quoted at 1,337.4 per dollar.

Despite Thursday's decline in equities, the KOSPI has gained 65.04% so far this year, while the won has strengthened 7.5% against the U.S. dollar.

In South Korea's debt market, September futures on three-year Treasury bonds fell 0.07 point to 102.97.

The yield on the most liquid three-year Korean Treasury bond rose 3.0 basis points to 3.936%, while the benchmark 10-year yield increased 5.3 basis points to 4.443%, according to Reuters.