FX.co ★ South Korean Shares Drop as Oil Prices Surge

The KOSPI Composite Index dropped nearly 7% to about 5,200 on Monday, deepening last week’s losses as oil surged above $100 a barrel on mounting fears of persistent inflation driven by a prolonged conflict in the Middle East. The sell-off followed the second week of the US-Israeli war with Iran, with no clear path to resolution, compounded by output cuts from major Middle Eastern oil producers and a continued halt in shipments through the Strait of Hormuz. Amid the surge in futures volatility, the Korea Exchange once again triggered a sidecar trading curb in premarket hours, suspending program trading for five minutes. Semiconductor bellwethers Samsung Electronics and SK Hynix led the downturn, plunging 9.1% and 9.5%, respectively, while other major decliners included Hyundai Motor (-9.8%), HD Hyundai Energy (-7%), and Hanwha Aerospace (-3%).