Kospi opens lower after U.S., Iran exchange strikes over weekend

Stocks opened lower on Monday as investor sentiment remained cautious due to renewed uncertainty over the fragile U.S.-Iran cease-fire and rising oil prices.

After opening 0.91 percent lower, the benchmark Kospi lost 177.54 points, or 2.11 percent, to 8,244.67 as of 9:15 a.m.

Oil prices climbed after the United States and Iran exchanged fresh strikes over the weekend, raising renewed concerns over energy supplies and shipping traffic through the Strait of Hormuz.

The two sides agreed to halt recent hostilities in the Gulf and renew talks, according to reports.

On Friday, the S&P 500 slipped 0.05 percent. The Nasdaq composite declined 0.24 percent, and the Dow Jones Industrial Average fell 0.09 percent.

Investors also sat on the sidelines as the country's top two chipmakers — Samsung Electronics and SK hynix — are set to unveil major long-term investment plans, including large-scale infrastructure investments to expand Korea's semiconductor production capacity, at a meeting chaired by President Lee Jae Myung later in the day.

Market bellwether Samsung Electronics sank 3.98 percent, and chip giant SK hynix retreated 3.33 percent.

Samsung Electro-Mechanics, an electronic components manufacturing affiliate of Samsung Electronics, rose 4.52 percent, and battery maker LG Energy Solution gained 4.22 percent.

The won weakened by 6.4 won to trade at 1,538.4 won against the dollar from the previous session as of 9:15 a.m.

Yonhap