Israeli, US forces proceed attacking Iran, prompting retaliation across the Gulf because the battle unfold to Lebanon
South Korean shares sank 12% on Wednesday, posting the most important drop of their 46-year historical past and wiping half a trillion {dollars} in worth simply this week, as fears that the Iran warfare might cripple Asia’s fourth-largest financial system despatched the received to a 17-year low.
Israeli and US forces continued attacking Iran, prompting retaliatory assaults across the Gulf because the battle unfold to Lebanon, rattled international markets and despatched oil costs sharply greater.
Losses within the nation’s shares far outweighed these seen elsewhere in Asia because the Iran battle heightened dangers for economies like South Korea, that are closely reliant on Center Jap oil for his or her vitality wants.
South Korea is the world’s fourth-largest purchaser of oil, and round 70% of its purchases come from the Center East.
Korean equities had been Asia’s best-performing, having doubled over the previous yr, making them notably weak to a capitulation, merchants mentioned.
The benchmark KOSPI fell 698.37 factors, or 12.06%, to shut at 5,093.54, marking the most important ?every day share loss in its historical past relationship again to 1980. It misplaced as a lot as 12.65% throughout the session.
On the index, circuit breakers have been activated for the primary time since August 2024, halting buying and selling for 20 minutes. A separate buying and selling curb was beforehand triggered for the second day in a row to halt programme buying and selling for 5 minutes, however did not cap the decline.
