▲ Financial data is displayed on a screen at the dealing room of Hana Bank in Seoul on Sept. 2, 2026. (Yonhap)

SEOUL, Sept. 2 (Yonhap) -- South Korean stocks traded sharply lower late Wednesday morning, weighed down by escalating military tensions in the Middle East.

The benchmark Korea Composite Stock Price Index (KOSPI) was trading down 195.54 points, or 2.86 percent, to 6,640.26 as of 11:20 a.m.

Overnight, U.S. stocks closed lower as inflation fears amplified due to higher oil prices after the United States and Iran exchanged strikes.

The Dow Jones Industrial Average fell 0.79 percent, and the S&P 500 lost 0.71 percent. The tech-heavy Nasdaq composite dropped 1.03 percent.

In Seoul, most shares went bearish across the board.

Top-cap Samsung Electronics declined 2.97 percent, and SK hynix, the second-largest share in terms of market capitalization, tumbled 3.13 percent.

Defense giant Hanwha Aerospace fell 3.02 percent, and leading shipbuilder HD Hyundai Heavy Industries slumped 5.08 percent.

Hyundai Mobis, an auto parts affiliate under Hyundai Motor Group, sank 6.2 percent, and food giant CJ Cheiljedang slid 1.99 percent.

The Korean won was quoted at 1,370.4 won against the U.S. dollar as of 11:20 a.m., up 3 won from the close of the previous stock trading session.

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