South Korea’s benchmark Kospi index erased early gains to close lower on Friday, as renewed geopolitical tensions in the Strait of Hormuz weighed heavily on investor sentiment across Asian markets.
The index had opened 1.09 percent higher, buoyed by positive overnight cues from Wall Street.
However, the rally proved short-lived as fresh reports of escalating friction in the Middle East corridor triggered a wave of risk-off selling.
Investors quickly unwound positions, reversing the morning’s optimism and pushing the benchmark into negative territory by late morning trading.
The reversal underscores the fragility of current market sentiment, which remains highly sensitive to shipping disruptions and energy-flow risks.
The Strait of Hormuz remains a critical chokepoint for global oil and gas transit; any perceived threat to its stability immediately impacts equity valuations, particularly in export-oriented economies like South Korea that rely on stable energy imports and open trade routes.