Seoul, June 4 (IANS) South Korean stocks opened sharply lower on Thursday, tracking overnight losses on Wall Street caused by uncertainty over negotiations between the United States and Iran to end their war in the Middle East.

After starting 2.02 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) lost 180.03 points, or 2.05 percent, to 8,621.46 as of 9:15 am, reports Yonhap news agency.

The KOSPI closed at an all-time high of 8,801.49 on Tuesday. The local stock market was closed Wednesday for the election.

Overnight, U.S. stocks ended lower amid concerns that an escalation of hostilities between the U.S. and Iran could undermine prospects for a peace agreement.

The Dow Jones Industrial Average fell 1.21 percent, the S&P 500 sank 0.74 percent while the tech-heavy Nasdaq Composite Index shed 0.89 percent.

In Seoul, large-cap shares were trading in negative terrain.

Market bellwether Samsung Electronics lost 2.08 percent, while its rival chipmaker SK hynix fell 2.54 percent.

Top automaker Hyundai Motor fell 4.25 percent, and electronic components maker Samsung Electro-Mechanics went down 2.81 percent. Samsung Life Insurance tumbled 12.91 percent.

The Korean won was trading at 1,523.25 won against the U.S. dollar at 9:15 a.m., down 6.85 won from the previous session.

Meanwhile, South Korea’s finance minister on Thursday vowed to take “immediate measures” when necessary to address excessive volatility in the foreign exchange market amid the recent sharp decline of the Korean won against the greenback.

Finance Minister Koo Yun-cheol discussed such measures with Bank of Korea Gov. Shin Hyun-song in Seoul, alongside Financial Services Commission Chairman Lee Eog-weon and Financial Supervisory Service Gov. Lee Chan-jin, according to the Ministry of Finance and Economy.

During the meeting, Koo said the government is closely monitoring volatility in the foreign exchange market and vowed to take “immediate measures” when necessary.

—IANS

na/