Seoul equities fell sharply on April 2, with the benchmark KOSPI index closing down 4.47% at 5,234.05, after renewed threats of US strikes against Iran unsettled investors and pushed global oil prices higher. According to the Yonhap News Agency, the Korean won subsequently weakened against the US dollar.

Trading volume reached 1.42bn shares, valued at KRW32.95 trillion ($21.72bn), with 814 stocks declining and 90 rising. Institutional and foreign investors sold a net KRW1.45 trillion and KRW136.43bn of shares respectively, while individual investors purchased a net KRW1.21 trillion.

The index opened more than 1% higher, following overnight gains on Wall Street, amid hopes for a swift resolution to the month-long conflict in the Middle East, which began in late February after US and Israeli strikes on Iran.

Sentiment deteriorated sharply after US President Donald Trump warned in a prime-time address that Iran would face intensified attacks over the next two to three weeks and that energy facilities could be targeted if no agreement is reached.

Global oil prices surged in response, with Brent crude rising more than 4% to over $100 a barrel.

The Korea Exchange activated a sell-side “sidecar” at around 2:46pm, temporarily halting program-driven KOSPI futures sales for five minutes. A similar mechanism was triggered on the tech-heavy KOSDAQ, which ended down 5.36% at 1,056.34.