Lead

Seoul stocks opened higher on Tuesday morning, but quickly gave back early gains before rebounding, as investors balanced bargain hunting in technology shares against lingering concerns over Middle East tensions. The benchmark Korea Composite Stock Price Index (KOSPI) started the session at 6,553.88, up 37.61 points, or 0.58 percent, according to Yonhap News Agency. By 9:15 a.m. the index had reversed to 6,477.71, a drop of 0.59 percent, reflecting fading enthusiasm. A later update, however, showed the KOSPI trading at 6,665.66 by 11:25 a.m., an advance of 149.39 points, or 2.29 percent.

The volatile session followed two sharp declines on the previous trading days, with the KOSPI shedding 4.46 percent on Monday and 6.37 percent on Friday. Overnight, major U.S. indexes closed lower as investors weighed the risk of renewed hostilities in the Middle East while awaiting corporate earnings from technology firms later in the week. The S&P 500 slipped 0.2 percent, the Dow Jones Industrial Average fell 0.6 percent, and the tech-heavy Nasdaq edged down 0.05 percent, Yonhap said.

Coverage

Yonhap's reports from the trading floor captured the market's shifting mood. An early dispatch described the index opening higher, with investors snapping up battered tech heavyweights such as semiconductor shares. The immediate concern was Middle East instability, with U.S. President Donald Trump vowing that Iran "will pay" for the killing of three American service members. Within an hour, another report showed those gains eroded, with the KOSPI down to 0.59 percent and the optimism fading.

A later report, however, highlighted a clear turnaround. The index had changed its trajectory, rising 2.29 percent, as foreign and institutional investors poured into the market. The report noted that U.S. Central Command stated additional strikes had taken place against Iran, potentially adding to geopolitical pressure. Yet the market's vulnerability underscored the tricky balance between buying the recent selloff and worry over escalating conflict.

The reports also linked to a broader sequence of events. A Yonhap report from July 13 described a rebound in Seoul stocks after an earlier dip A rebound that came from Wall Street gains, particularly from South Korean chipmaker SK hynix, whose American depositary receipts (ADRs) closed on stock exchange above the initial offering price. That earlier session had seen the KOSPI go up 27.48 points, likely 0.37 percent, to 7,503.40. But global tensions continued to cast a shadow over the market.

Amid the indices' swings, specific stocks moved diversely. On the morning of July 21, Samsung Electronics was up 2.25 percent in one report, while competing SK hynix rose 0.28 percent. Meanwhile, Hyundai Motor fell 3.26 percent, and battery maker LG Energy dipped 0.31 percent. In the later 11:00 a.m. report, Samsung had risen further to 4.82 percent, in the top chemist rate of manufacturers at 0.8 percent. The Korean won was quoted at around 1,475.7 won per dollar at this time, a modest 2.6 won gain.

Earlier, the big U.S. stock declines and the earnings outlook, plus the Middle East geopolitical jitters, caused investors to seek stronger position.

Key Claims

  • The KOSPI opened at 6,553.88, 0.58 during the previous session, later dropped to 6,477.71, but then climbed to 6,665.46, or 2.29 percent.
  • Donald Trump vowed that Iran will "pay" for the deaths of three U.S. troops.
  • Saudi Arabia said it would take "necessary measures" to protect its ships from threats by Tehran-backed Houthi rebels in Yemen.
  • The U.S. Central Command said further strikes against Iran had been completed.
  • U.S. stock indexes closed lower on the day as investors considered renewed middle east hostility and awaited tech earnings.
  • SK hynix's ADRs closed at US$168, above the offering price of $149, as of a July 13 report.