South Korea
South Korea proposes military talks with North Korea to ease border tensions
South Korea on Friday proposed holding military talks with North Korea to clarify the location of their shared border and prevent accidental clashes in frontline areas amid rising tensions following landmine explosions that injured three South Korean soldiers.
It remains uncertain whether Pyongyang will accept the proposal. North Korean leader Kim Jong Un has adopted an increasingly hard-line stance towards Seoul, effectively halting almost all dialogue and cooperation between the two countries in recent years.
Meanwhile, North Korea has been strengthening its border defences by laying mines, installing barbed-wire fences, building tactical roads and anti-tank barriers, and constructing other fortifications along one of the world's most heavily militarised frontiers.
South Korea's military has reported that North Korean soldiers crossed the Military Demarcation Line (MDL) 50 times this year while carrying out fortification work. South Korean troops responded with warning shots and broadcasts, according to the military.
Seoul made a similar proposal for military talks in November, but Pyongyang did not respond. South Korea has become more eager to reduce tensions since landmine explosions on September 21 injured three of its soldiers. Its military concluded that the blasts were caused by North Korean mines planted south of the demarcation line.
"Our Ministry of National Defense officially proposes to North Korean authorities that South-North military talks be held to mutually confirm the exact location of the ground military demarcation line between the South and the North, discuss the restoration of military communication lines, and discuss measures to prevent accidental clashes in border areas," South Korean Deputy Minister for Defense Policy Kim Hong-Cheol said in a televised statement Friday.
He added that Seoul was also willing to participate in three-way talks involving the US-led United Nations Command.
The proposal came days after Kim Yo Jong, the influential sister of North Korean leader Kim Jong Un, visited frontline areas where North Korean troops are reinforcing border defences. During the visit, she reiterated Pyongyang's threat to retaliate against any South Korean provocation targeting the fortification work.
Kim Yo Jong also announced plans to activate loudspeakers along the border to broadcast anti-Seoul propaganda, a psychological warfare tactic used by both Koreas for decades. She said unspecified "new counter means" had also been placed on alert along the frontier.
She accused South Korea of using warning shots and broadcasts against North Korean troops working on the fortifications under the false pretext that they had crossed the demarcation line.
South Korean officials say the recent activities have exposed longstanding disagreements between the two countries over the precise location of the military boundary. The line was established under the 1953 armistice that ended fighting in the Korean War, but some boundary markers dating back decades have since disappeared.
However, South Korean Defence Minister Kang Shin-chul has maintained that the location of last month's landmine explosions was not in a disputed area. North Korea has denied responsibility for the incident and rejected Seoul's demands for an apology and the removal of its remaining mines.
Kim Hong-Cheol warned that failing to resolve the disagreement over the demarcation line could increase the likelihood of accidental clashes, as troops on both sides operate according to their own understanding of the boundary.
"The recent increase in North Korean activities along the military demarcation line, as well as our warning broadcasts and warning shots, is also related to this situation," he said.
During a visit to frontline areas on Wednesday alongside Kim Yo Jong, North Korean Army Marshal Pak Jong Chon denied that North Korean troops had crossed the border while carrying out fortification work.
"Our army knows where our borderline is better than any others," he said.
Pak accused South Korea of making "deliberate, premeditated and absurd" claims to shift responsibility for escalating tensions and threatened an "overwhelming response" to any South Korean provocations.
10 days ago
South Korea to recall ambassador from Ukraine over North Korean POW dispute
South Korea said Thursday it will recall its ambassador to Ukraine, escalating its protest over Ukrainian President Volodymyr Zelenskyy's disclosure of an alleged secret transfer of two North Korean prisoners of war to South Korea.
The announcement came days after South Korean President Lee Jae Myung warned that Seoul could take unspecified punitive measures if Ukraine does not apologize for revealing the transfer.
South Korea's Foreign Ministry did not say when Ambassador Park Hee-chang would return home. In a statement, the ministry said Seoul would continue discussions with Kyiv and expressed hope that the dispute could be resolved smoothly.
The diplomatic dispute began after Zelenskyy mentioned the transfer of the two North Korean soldiers during his speech at the United Nations on Sept. 23.
South Korea has accused Ukraine of violating a nondisclosure agreement covering the soldiers' transfer in mid-September. Kyiv has denied that such an agreement existed.
The two soldiers were among thousands of North Korean troops sent to support Russia's war against Ukraine. After being captured in early 2025, they said they wanted to settle in South Korea because they could face persecution if returned to North Korea.
South Korea had agreed to accept them because it legally considers North Korea part of its territory and has a policy of receiving and providing financial support to North Korean defectors.
South Korean officials said the nondisclosure arrangement was intended to protect the soldiers and their relatives in North Korea. However, some experts believe South Korea's liberal government may also be concerned that publicizing the soldiers' arrival could complicate its efforts to improve relations with Pyongyang.
North Korean state media has not commented on the transfer. However, Pyongyang has previously reacted angrily to major defections, accusing Seoul of abducting North Korean citizens.
North Korea has avoided talks with South Korea and the United States since 2019 while focusing on expanding its nuclear weapons program.
It remains unclear what further measures Seoul may take against Ukraine. Experts say maintaining relations with Kyiv is important for South Korea because Ukraine could provide intelligence on North Korea's growing military cooperation with Russia and the battlefield experience of North Korean troops.
They also said cooperation with Ukraine is important for South Korea's ties with Western countries supporting Kyiv in the war.
Observers believe Zelenskyy disclosed the transfer to highlight the risks posed by North Korea's military support for Russia and encourage greater international assistance for Ukraine.
South Korea has provided $445 million in humanitarian aid to Ukraine since 2022. In July, Lee pledged another $100 million in aid to Ukraine during a meeting with Zelenskyy.
26 days ago
South Korea says Zelenskyy’s POW disclosure may have sought support for Ukraine
South Korea’s spy agency said Wednesday that Ukrainian President Volodymyr Zelenskyy’s disclosure of the transfer of two North Korean prisoners of war to South Korea was likely intended to build public support for greater assistance to Ukraine.
Zelenskyy revealed the transfer during his speech at the United Nations last week, surprising South Korean officials and prompting strong protests from Seoul. South Korea asked Kyiv to apologize and explain what it called a breach of an agreement to keep the transfer confidential. Ukraine denied making such an agreement.
The dispute has strained the traditionally friendly relations between South Korea and Ukraine, though it remains unclear whether it will have broader consequences.
The two North Korean soldiers were among thousands of troops sent by Pyongyang to support Russia in fighting Ukrainian forces in Russia’s Kursk border region. North Korea has also supplied conventional weapons to Russia as part of expanding military cooperation between the two countries.
Ukraine has not responded to South Korea’s demand for an apology.
South Korea’s National Intelligence Service briefed a parliamentary committee behind closed doors Wednesday. Lawmaker Yoo Yeong-ha, who attended the meeting, said the agency told lawmakers that Ukraine had not offered an apology or expressed regret through either official or unofficial channels.
The agency assessed that Zelenskyy likely disclosed the transfer to encourage South Korean public support for providing weapons and other assistance to Ukraine, Yoo said. He did not explain how the agency reached that conclusion.
South Korea has provided humanitarian and other support to Ukraine but has not supplied weapons, following its policy of not sending arms to countries involved in active conflicts.
Another lawmaker, Yun Kun-young, said the agency told lawmakers that the two North Korean prisoners arrived in South Korea in mid-September and were in generally good health. While in Ukraine, they expressed a desire to settle in South Korea, Yun said.
North Korea has not publicly commented on the transfer. It has previously accused South Korea of abducting or persuading North Koreans to defect.
South Korean officials have expressed concern about the safety of the two soldiers and their relatives in North Korea. Experts have also warned that the transfer could provoke a response from Pyongyang and complicate efforts to resume talks between North Korea and the United States.
Yun said the intelligence agency estimates that about 9,000 North Korean soldiers are currently involved in surveillance operations in the Kursk region.
The agency also told lawmakers that Russia has provided North Korea with weapons technology to support its military modernization. However, Moscow has been reluctant to share advanced technology related to nuclear-powered submarines and intercontinental ballistic missiles, Yun said.
Kim Jong Un’s daughter strengthens position as possible successorThe intelligence agency also assessed that the teenage daughter of North Korean leader Kim Jong Un has strengthened her position as his likely successor, Yun said.
He said the agency told lawmakers that Kim’s daughter, reportedly named Kim Ju Ae and believed to be about 13, has made around 30 public appearances with her father this year. That is the highest number recorded during the same period since she first appeared publicly in late 2022.
Some experts, however, caution against concluding that she will succeed her father, pointing to North Korea’s strongly male-dominated political system.
Yoo said the intelligence agency observed that Kim’s daughter has sought to present a more mature image by wearing women’s suits and pointed-toe heels.
The agency has previously used artificial intelligence, high-resolution video analysis and other methods to assess Kim Jong Un’s health.
At Wednesday’s meeting, the agency said Kim remains severely obese but showed no signs of other major health problems, Yun said.
1 month ago
South Korea seeks apology from Ukraine over disclosure of North Korean POW transfer
South Korea has demanded an official apology and explanation from Ukraine after President Volodymyr Zelenskyy publicly disclosed the transfer of two North Korean prisoners of war to South Korea, which Seoul said was supposed to remain confidential.
Zelenskyy told the U.N. General Assembly last week that Ukraine had recently transferred the two men to South Korea after they were captured on a battlefield in the Ukraine-Russia war in early 2025. They were among thousands of North Korean troops deployed to support Russia.
South Korean President Lee Jae Myung accused Ukraine of violating a nondisclosure agreement concerning the transfer. Ukraine, however, denied that such an agreement existed.
Seong Ghi-hong, a senior presidential adviser on public relations, expressed “strong regret” Sunday over Ukraine’s disclosure and called for an official apology and clarification.
Seong said Ukraine’s denial of the agreement was “false” and had seriously damaged trust between the two governments and their friendly relations.
According to Seong, Seoul and Kyiv had agreed to keep the transfer confidential because South Korea was concerned about the safety of the North Korean soldiers and their families, as well as diplomatic and security considerations. Ukraine, meanwhile, was concerned that sending the prisoners to South Korea could lead to domestic criticism because it would lose a potential opportunity to exchange them for Ukrainian soldiers held by Russia.
Ukraine’s Embassy in Seoul did not respond to repeated calls seeking comment Monday.
North Korean POWs seek resettlement in South KoreaThe two North Korean soldiers said in media interviews while still in Ukraine that they wanted to settle in South Korea.
Seoul had urged Ukraine not to return them to North Korea, where they could face persecution. South Korea legally considers North Korea part of its territory and has a policy of accepting North Korean defectors and providing them with financial assistance.
More than 34,000 North Koreans have settled in South Korea since the 1950-53 Korean War, with most arriving during the past three decades. Most defectors have been civilian women from economically disadvantaged northern parts of North Korea, while defections by soldiers are relatively rare.
Zelenskyy did not provide details about the transfer in his U.N. speech. He said one of the soldiers had attempted suicide after realizing he was about to be captured and expressed surprise that he survived.
Some analysts believe Zelenskyy disclosed the case to highlight North Korea’s involvement in the war and encourage greater Western support for Ukraine. South Korea’s government, meanwhile, has been concerned that publicizing the transfer could provoke a response from North Korea and complicate efforts to revive diplomatic engagement between Pyongyang and Washington.
Seoul maintains policy against direct military aid to UkraineSouth Korea, a major arms exporter with a well-equipped military backed by the United States, has provided humanitarian assistance and other support to Ukraine and joined US-led sanctions against Russia since the war began in 2022.
However, Seoul has rejected calls from Ukraine and NATO to provide direct military assistance, maintaining its long-standing policy of not supplying weapons to countries actively involved in armed conflicts.
North Korea and Russia confirmed in April 2025 that North Korean troops had fought alongside Russian forces to repel a Ukrainian incursion into Russia’s Kursk border region.
South Korea, the United States and other countries have also accused North Korea of supplying Russia with artillery shells, ammunition and missiles in exchange for economic and military assistance. South Korea’s intelligence service estimated last year that North Korea had deployed about 15,000 troops to Russia, with around 2,000 reportedly killed.
Closer military cooperation with Russia has helped North Korean leader Kim Jong Un resist US-led pressure while accelerating the country’s nuclear weapons program.
Last month, US President Donald Trump reduced the scale of a military exercise with South Korea in what appeared to be an effort to revive diplomacy with Kim. North Korea, however, indicated that the move was insufficient to persuade it to return to negotiations.
1 month ago
Three South Korean officers injured in explosion near North Korea border
An explosion in South Korea’s heavily fortified border area with North Korea injured three military officers on Monday, the country’s Defense Ministry said.
The blast occurred during an unspecified operation inside the Demilitarized Zone (DMZ), the buffer area separating the two Koreas. The ministry said the cause of the explosion was not immediately known.
Officials did not say whether the blast may have been caused by a land mine planted by North Korea. The North has increased border fortifications in recent months, including mines and anti-tank barriers, as tensions between the two countries have worsened.
Two of the injured officers were airlifted from the area by helicopter, while the third was taken out by land before being flown to a hospital, according to the ministry. All three are receiving treatment at a military hospital near Seoul.
The DMZ stretches about 248 kilometres and is 4 kilometres wide, making it one of the world’s most heavily armed borders. An estimated 2 million land mines are scattered in and around the area, which is also protected by barbed-wire fences, tank traps and troops from both sides.
The zone was established as part of the 1953 armistice that ended the 1950-53 Korean War. The two countries, however, have never signed a peace treaty.
Concerns have grown in South Korea over increased activity by North Korean troops near the Military Demarcation Line as Pyongyang strengthens its border defenses.
South Korea’s military has not officially confirmed media reports that North Korean troops crossed the demarcation line more than 20 times during front-line operations in August.
In April 2025, South Korean troops fired warning shots after about 10 North Korean soldiers crossed the line in the eastern section of the DMZ. The North Korean troops withdrew after South Korea issued audio warnings and fired the shots, with no clashes reported. In June 2024, North Korean troops crossed the border three times, prompting similar warning shots.
North Korean leader Kim Jong Un has in recent years suspended nearly all cooperation and diplomacy with South Korea and called Seoul his country’s most hostile enemy amid a broader deadlock in nuclear negotiations with the United States.
North Korean land mines have also previously been washed into South Korea by swollen rivers, killing or injuring civilians. In August 2015, land mine explosions seriously injured two South Korean soldiers, further raising tensions between the two Koreas.
1 month ago
US, South Korea, Japan to hold trilateral military drill amid North Korean tensions
The United States, South Korea and Japan will hold a five-day trilateral military exercise next month as they seek to strengthen their response to North Korea’s nuclear and missile threats, South Korean officials said Friday.
The announcement came a day after North Korea warned that it would take “serious, immediate and powerful” action against what it described as hostile moves by the United States.
The planned exercise could further reduce the chances of an early restart of talks between Washington and Pyongyang, despite US President Donald Trump’s recent decision to reduce the scale of a major military exercise with South Korea.
South Korea’s military said the Freedom Edge exercise will begin September 7 in waters near the southern island of Jeju. It described the drill as defensive and said it aims to improve the three countries’ ability to respond to North Korean nuclear and missile threats while supporting regional peace and stability.
North Korea has repeatedly condemned the trilateral exercise, calling it a “reckless show of strength.” Pyongyang has also accused the US and its allies of using the drill to pressure China and Russia.
Launched in 2024, Freedom Edge combines air and naval exercises to improve cooperation in areas including ballistic missile defence, anti-submarine warfare and surveillance.
Last week, US and South Korean forces ended their annual Ulchi Freedom Shield exercise six days earlier than planned after Trump said he had ordered the Pentagon to “substantially reduce” the drill. North Korea considers such exercises preparations for an invasion.
Trump cited his relationship with North Korean leader Kim Jong Un when announcing the reduction. But Pyongyang rejected the gesture, saying shortening the exercise did not change its “provocative, aggressive nature.”
North Korea subsequently fired about 10 short-range ballistic missiles into the sea, apparently in response to the US-South Korean military exercise.
Pyongyang has said it will not return to talks with Washington unless the US drops its demand for North Korea to give up its nuclear weapons as a condition for negotiations.
Since talks with Trump broke down in 2019, Kim has expanded North Korea’s nuclear arsenal and strengthened ties with Russia amid the war in Ukraine. Experts say Pyongyang could now seek major concessions from Washington, including recognition as a nuclear-armed state and broad sanctions relief, in exchange for giving up part of its nuclear programme.
On Thursday, North Korea’s Foreign Ministry accused Washington of carrying out a series of hostile actions, including a possible plan to sell air-to-air missiles and related equipment to South Korea.
It warned that Pyongyang would respond strongly to what it called hostile acts in various areas.
2 months ago
Asian shares rise, South Korea’s Kospi jumps 6% after US expands debt buybacks
Asian shares rose Thursday, following gains on Wall Street, while South Korea’s benchmark Kospi jumped more than 6% after the US Treasury announced plans to significantly increase its purchases of longer-term government debt.
US stock futures also edged higher after the Treasury said it would at least double the size of its planned buybacks of longer-term government bonds.
The move could reduce pressure on stock markets from rising bond yields. Increased government bond purchases can push bond prices higher and, in turn, lower yields.
South Korea’s Kospi surged 6.1% to 6,858.91 after falling 5.8% on Wednesday as investors sold shares linked to artificial intelligence.
Samsung Electronics rose 9.7%, while SK Hynix, a major memory chipmaker, gained 14.1% after announcing a large share buyback programme.
Japan’s Nikkei 225 climbed 1.3% to 66,178.26, recovering from losses earlier in the week. Japan reported a trade deficit for the third consecutive month in July, with both imports and exports reaching record levels.
SoftBank Group, which has invested in OpenAI, gained 3.8%.
Hong Kong’s Hang Seng Index rose 1.1% to 25,786.32, while the Shanghai Composite gained 0.3% to 3,905.23.
Australia’s S&P/ASX 200 increased 0.3% to 9,066.40. Taiwan’s Taiex was little changed, while India’s Sensex gained 0.7%.
US government bond yields fell after the Treasury announced its expanded buyback plans. Bond prices and yields generally move in opposite directions.
The announcement appeared to ease investor concerns about rising borrowing costs. On Wednesday, the S&P 500 rose 0.2%, ending a three-day losing streak. The Dow Jones Industrial Average and Nasdaq composite each also gained 0.2%.
US bond yields have climbed in recent months amid concerns about inflation linked to the prolonged war in Iran, rising government debt and other economic pressures.
The yield on the 10-year US Treasury note fell to about 4.64%, down from 4.71% on Tuesday. However, it remains significantly higher than before the war in Iran began. The 30-year Treasury yield also declined to 5.18% from 5.28%.
Bond yields in Asia also eased following the US Treasury announcement. Japan’s 10-year government bond yield dropped to about 2.83% from above 2.89% on Wednesday. It had recently reached its highest level in about 30 years.
Oil prices edged higher Thursday as negotiations between the US and Iran showed little progress.
Brent crude, the international benchmark, rose 0.3% to $91.90 a barrel. It was trading at around $72 before the war began.
US benchmark crude gained 0.2% to $84.57 a barrel.
The US dollar rose to 158.60 Japanese yen from 158.16 yen. The euro was trading at $1.1676, slightly.
2 months ago
Asian markets rebound as South Korea and Japan recover after AI stock sell-off
Asian stock markets mostly closed higher on Tuesday, with South Korea and Japan recovering some of the losses suffered in recent sessions due to heavy selling of artificial intelligence (AI)-related shares.
U.S. stock futures moved slightly higher, while oil prices fell.
South Korea's Kospi index rose 4.7% to 6,821.41 after dropping 4.5% a day earlier. Technology stocks led the recovery, with Samsung Electronics climbing 7.4% and memory chip maker SK Hynix gaining 6.4%.
Despite a decline of more than 20% over the past month as investors locked in profits amid concerns over a possible AI investment bubble, the Kospi remains up more than 50% so far this year.
Japan's Nikkei 225 gained 2.8% to 65,926.41 after reopening following Monday's public holiday, recovering part of last week's losses.
Among major gainers, Kioxia Holdings surged 15.9%, chip testing equipment maker Advantest rose 6.9%, SoftBank Group advanced 6.1%, and Tokyo Electron added 1.3%.
Taiwan's Taiex index climbed 3.6%, supported by a 2.8% rise in Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker.
Elsewhere, Hong Kong's Hang Seng Index edged up less than 0.1% to 25,150.75, while China's Shanghai Composite Index rose 0.6% to 3,819.66. Australia's S&P/ASX 200 added 0.1%, while India's Sensex slipped 0.1%.
Oil prices eased after Monday's gains. Brent crude, the global benchmark, fell 0.7% to $88.63 a barrel, while U.S. benchmark crude dropped 0.3% to $82.24 a barrel.
Investors continued to watch developments in the Middle East after Iran reportedly attacked another tanker in the Strait of Hormuz, a vital route for global oil and gas shipments. The United States also launched fresh strikes on Iran for a tenth consecutive night, while Tehran continued retaliatory attacks targeting U.S. allies in the region.
Iran's interior minister visited Pakistan, which has been acting as a mediator, for talks aimed at easing tensions, although no breakthrough has been announced.
Analysts at ING said there were some signs of possible de-escalation between the United States and Iran, but warned that major differences remain. They also said attacks by Yemen's Iran-backed Houthi rebels on shipping linked to Saudi Arabia have increased concerns over global oil supplies.
On Wall Street, the S&P 500 fell 0.2% on Monday, while the Dow Jones Industrial Average dropped 0.6%. The Nasdaq Composite slipped by less than 0.1%.
Several major AI and semiconductor companies still posted gains. Nvidia rose 0.2%, Micron Technology gained 1.9%, Broadcom climbed 2%, and Advanced Micro Devices (AMD) advanced 1.6% after expanding its AI partnership with Microsoft.
In currency trading, the U.S. dollar was little changed at 162.48 Japanese yen, while the euro remained steady at $1.1414.
3 months ago
Asian markets mostly rise, South Korea's Kospi tumbles nearly 5% amid AI stock selloff
Most Asian stock markets ended higher on Monday, but South Korea's benchmark Kospi index plunged nearly 5% as investors sold off artificial intelligence (AI)-related stocks.
Japanese markets remained closed for a public holiday, while US stock futures showed mixed trends.
Oil prices continued to rise, gaining more than 2%, as tensions between the United States and Iran intensified, raising fears of supply disruptions. Brent crude climbed 2.6% to $90.40 a barrel, while US benchmark crude rose 2.2% to $83.58 a barrel.
The latest gains came after the US carried out attacks for a ninth consecutive night, with Iran continuing retaliatory strikes against US allies across the Middle East.
Analysts at ING said the ongoing exchange of attacks could lead to wider conflict across the Persian Gulf if the situation continues to escalate. They also noted that tanker traffic through the Strait of Hormuz, a key route for global oil shipments, has slowed sharply, adding pressure to oil supplies.
In stock markets, South Korea's Kospi fell 4.9% to 6,490.97, dragged down by losses in major technology shares. Samsung Electronics dropped 4.4%, while memory chipmaker SK Hynix declined 3.3%.
Taiwan's Taiex index slipped less than 0.1%. However, Taiwan Semiconductor Manufacturing Co. (TSMC), the island's largest chipmaker, rose 2% after tumbling 7.3% on Friday. Investors had reacted negatively to the company's announcement that it would invest an additional $100 billion to expand chip production in the United States.
Elsewhere in the region, Hong Kong's Hang Seng Index advanced 2.1% to 25,105.78, the Shanghai Composite Index gained 1.2% to 3,808.39, and Australia's S&P/ASX 200 edged up 0.2% to 8,815.30. India's Sensex, however, fell 0.9%.
AI-related technology shares remained under pressure after heavy losses on Friday, reflecting growing concerns that the sector may be overvalued following months of strong gains. Many investors chose to book profits by selling their holdings.
Market sentiment was also affected by the launch of a new open-source AI model, Kimi K3, developed by Beijing-based Moonshot AI. The release drew comparisons with the "DeepSeek moment" in early 2025, when a Chinese AI model unsettled global markets by demonstrating that lower-cost Chinese AI systems could compete with leading products from companies such as Anthropic and OpenAI.
On Wall Street on Friday, the S&P 500 fell 1% to 7,457.69, the Dow Jones Industrial Average lost 0.8% to 52,146.42, and the Nasdaq Composite dropped 1.4% to 25,520.24.
Chipmakers also posted losses, with Nvidia falling 2.2%, while Broadcom and Advanced Micro Devices (AMD) each declined about 1%.
SpaceX shares dropped 5.4%, falling below their initial public offering price of $135 and hitting their lowest level since the company's Nasdaq debut last month.
In currency trading, the US dollar slipped to 162.37 Japanese yen from 162.43 yen, while the euro rose slightly to $1.1446 from $1.1438.
3 months ago
Asian markets mostly fall as South Korea's Kospi slides 6.6%; oil prices ease despite US-Iran conflict
Most Asian stock markets ended lower on Thursday, while oil prices edged down despite continued military exchanges between the United States and Iran. U.S. stock futures, however, moved slightly higher.
Technology and artificial intelligence (AI)-related shares came under pressure, dragging down markets in South Korea and Japan.
South Korea's Kospi dropped 6.6% to 6,816.70 after the Bank of Korea raised interest rates for the first time since 2023. The move was aimed at easing inflationary pressure linked to the Iran conflict.
Among major South Korean stocks, memory chipmaker SK Hynix fell 11.2%, while Samsung Electronics lost 8.2%.
Taiwan's Taiex slipped 0.3% ahead of the quarterly earnings report of Taiwan Semiconductor Manufacturing Co. (TSMC), whose results are widely viewed as an indicator of the global semiconductor industry and AI demand.
Japan's Nikkei 225 declined 2.9% to 66,767.64. Memory chip producer Kioxia plunged 13.5%, while chip equipment maker Tokyo Electron fell 5.2% and testing equipment manufacturer Advantest dropped 5.6%. SoftBank Group also lost 6.4%.
Hong Kong's Hang Seng Index stood out among regional markets, rising 1.7% to 25,111.22. Alibaba's Hong Kong-listed shares jumped 4.4% after China's cyberspace regulator approved Apple's Apple Intelligence AI service for use in China. Alibaba said its Qwen AI model will be integrated into the Apple Intelligence platform.
China's Shanghai Composite Index fell 0.9% to 3,921.20, while Australia's S&P/ASX 200 slipped 0.2% to 8,820.50. India's Sensex gained 0.3%.
Oil prices eased slightly but remained well above levels seen before the outbreak of the US-Iran conflict.
Brent crude, the international benchmark, fell 0.4% to $84.55 a barrel, compared with about $72 a barrel in late February before the conflict began. U.S. benchmark crude slipped 0.2% to $79.34 a barrel.
Analysts at ING said oil prices recorded a third straight day of gains before Thursday's slight decline, as there were still few signs of easing tensions between Washington and Tehran.
They also said the conflict was continuing to disrupt tanker traffic through the Strait of Hormuz, a key route for global oil shipments, affecting vessel movements from the Persian Gulf.
On Wall Street Wednesday, the S&P 500 gained 0.4% to close at 7,572.40. The Dow Jones Industrial Average rose 0.3% to 52,658.64, while the Nasdaq Composite advanced 0.6% to 26,269.23.
SpaceX shares briefly fell below their initial public offering (IPO) price of $135 before recovering part of the losses.
Investor sentiment was also supported by data showing U.S. inflation slowed in June and stronger-than-expected quarterly earnings from BlackRock. Shares of the investment firm climbed 6.6% after it reported better-than-expected revenue and profit.
In early currency trading Thursday, the U.S. dollar slipped to 162.09 Japanese yen from 162.19 yen, while the euro traded at $1.1467, little changed from $1.1464.
3 months ago