Live Updates > Live Update Details
2026-03-23 16:14:34
[Middle East Situation Escalates, South Korean Stocks Plunge Over 6%] South Korean financial markets experienced significant volatility on March 23, with the KOSPI index plummeting over 6% in a single day, impacted by the rapidly deteriorating situation in the Middle East and the approaching deadline for the US ultimatum to Iran. At the close, the KOSPI fell 375.45 points, or 6.49%, to 5405.75, having briefly dipped below the 5400-point mark during the day. The sharp market fluctuations triggered a temporary trading halt shortly after the market opened, indicating rapidly escalating market panic. In terms of exchange rates, the Korean won weakened significantly against the US dollar, closing at 1517.3 won to the dollar in the afternoon, a near 17-year low, reflecting increased demand for safe-haven assets. Analysts believe the direct trigger for this market crash was US President Trump's ultimatum to Iran to open the Strait of Hormuz within 48 hours, to which Iran responded strongly, drastically increasing geopolitical risks and significantly strengthening market risk aversion. Furthermore, rising oil prices pushed up inflation expectations, weakening market expectations for a Federal Reserve rate cut this year and further exacerbating the withdrawal of funds from risky assets. Affected by this, major South Korean stocks generally fell, with semiconductors, automobiles, and batteries all declining. Meanwhile, the South Korean KOSDAQ index also fell 5.56%, indicating significant overall market pressure. Market analysts point out that with the Middle East situation remaining unclear, uncertainty in global financial markets will persist. If high oil prices, high inflation, and high interest rates move in tandem, the stock market will continue to face significant downward pressure. (CCTV News)
