Seoul, April 2 (IANS) South Korean stocks dropped over 3 per cent on Thursday morning after US President Donald Trump warned that the United States would strike Iran “extremely hard” over the next few weeks.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 197.1 points, or 3.6 percent, to 5,281.6 as of 11:20 a.m.

The index opened more than 1 percent higher, tracking overnight gains on Wall Street, but turned negative after Trump’s remarks dashed hopes for a swift end to the monthlong conflict, reports Yonhap news agency.

In a prime-time address earlier in the day, Trump said, “We are going to hit them extremely hard over the next two to three weeks” and would “bring them back to the Stone Age,” warning that energy facilities in Iran could be targeted if a deal is not reached.

The warning pushed up global oil prices, with Brent crude jumping more than 4 percent to above US$100 a barrel.

The conflict, which began in late February following U.S.-Israeli strikes on Iran, has driven up global oil prices amid supply disruptions, rattling financial markets and fueling concerns over inflation and a potential economic slowdown.

In Seoul, most big-cap shares drifted lower. Market bellwether Samsung Electronics fell 5.17 percent, while chip giant SK hynix dropped 5.15 percent.

Top automaker Hyundai Motor sank 4.3 percent, while its affiliate Kia lost 2.06 percent.

Leading battery maker LG Energy Solution went down 0.37 percent, and artificial intelligence investment firm SK Square dived 5.59 percent. Nuclear power plant builder Doosan Enerbility decreased 4.72 percent.

Leading financial firm KB Financial shed 1.35 percent, and major steelmaker POSCO slid 1.01 percent.

Major shipbuilder HD Hyundai Heavy retreated 2.21 percent, and its rival Hanwha Ocean dived 4.49 percent.

Bio shares traded mixed. Bio giant Samsung Biologics climbed 1.34 percent, while Celltrion fell 3.83 percent.

Among gainers, defence giant Hanwha Aerospace jumped 6.3 percent, and Samsung SDI added 2.2 percent.

The local currency was trading at 1,520.2 won against the greenback at 11:20 a.m., down 18.9 won from the previous session.

—IANS

na/