Regional Tensions Affected South Korean Stocks

Tensions between South Korea and North Korea from time to time create problems for the stocks. Interestingly, South Korean stocks declined on September 24 due to the tensions on the Korean peninsula.

South Korea’s Kospi index fell 2.59% to close at 2’272.70. At the same time, the Kosdaq index dropped 4.33% to end its trading day at 806.95. 

According to South Korea’s defense ministry, North Korea killed a missing official from South Korea this week. It was the first case since July 2008, that a South Korean civilian has been shot dead in North Korea.

Importantly, shares of South Korean defense firm Victek jumped 25.13% after the announcement. However, North Korea exposed stocks Hamil Hyundai Cement and Hyundai Elevator fell on Thursday.

People should take into consideration that Asia-Pacific markets also suffered losses on Thursday, following an overnight drop in the U.S.

For example, Hong Kong’s Hang Seng index dropped 1.82% to close at 23’311.07. Moreover, mainland Chinese stocks fell on the day. The Shanghai Composite dropped 1.72% to approximately 3’223.18. In the meantime, the Shenzhen Component fell 2’238% to about 12’816.61. 

Also, the Taiex in Taiwan declined 2.54% to close at 12’264.38. 

Japanese stocks also fell on the day. The Nikkei 225 dropped 1.11% to finish its trading day at 23’087.82. Moreover, the Topix index fell 1.08% to 1’626.44.

Australia’s S&P/ASX 200 dropped 0.81% to 5’875.90.

Stocks, tensions, and other factors

Tensions affected South Korean stocks. However, there are other factors as well. Technology shares in Asia declined on Thursday, following losses seen by their counterparts in the U.S.

Importantly, in Japan conglomerate, SoftBank Group saw its stock fell 4.52%. Also, Kakao in South Korea dropped 3.69%. 

Hong Kong-listed shares of Chinese smartphone maker Xiaomi fell 4.84%. Also, shares of Chinese tech giant Tencent dropped 1.75%.

Moreover, the Hang Seng Tech index fell 3.35% on the day to 7’054.28. In the meantime, shares of Taiwan Semiconductor Manufacturing Company in Taiwan declined 2.42%.