▲ This photo taken Aug. 7, 2026 shows the dealing room of Hana Bank in Seoul during morning trading hours. (Yonhap)

(ATTN: UPDATES with details in paras 4, 10-14)

SEOUL, Aug. 7 (Yonhap) -- Seoul shares ended lower for a second straight session Friday, weighed down by foreign selling as renewed tensions in the Middle East dampened investor sentiment.

The Korean won rose against the U.S. dollar.

After opening 1.09 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) fell 37.61 points, or 0.6 percent, to close at 6,258.77, after dropping as low as 6,158.73.

Trade volume was light at 297.18 million shares worth 24.3 trillion won (US$17.1 billion), with winners outnumbering losers 552 to 321.

The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.

Overnight, U.S. stocks ended lower. The Dow Jones Industrial Average fell 0.85 percent, while the tech-heavy Nasdaq Composite slipped 0.06 percent amid uncertainty over a possible agreement between the United States and Iran to reopen the Strait of Hormuz.

Iran has reportedly threatened to deny U.S. and Israeli vessels access to the strategic waterway and require compensation from countries it considers hostile before allowing them passage.

Foreign investors sold a net 858.07 billion won worth of stocks, while institutions and retail investors purchased a net 578.99 billion won and 266.98 billion won, respectively.

Uncertainty surrounding the strategic waterway is expected to keep oil prices elevated, adding to volatility in a market already unsettled by concerns over the artificial intelligence (AI) trade, analysts said.

In Seoul, large-cap stocks were mixed.

Chip giant SK hynix dropped 4.88 percent to 1,422,000 won, top carmaker Hyundai Motor declined 1.12 percent to 395,500 won, and Lotte Shopping plunged 12.93 percent to 99,700 won.

Shipbuilder Hanwha Ocean backtracked 1.43 percent to 89,400 won, and national flag carrier Korean Air shed 1.27 percent to 27,150 won.

Among gainers, market bellwether Samsung Electronics rose 0.22 percent to 231,000 won, and defense giant Hanwha Aerospace climbed 4.08 percent to 1,097,000 won.

The Korean won was quoted at 1,417.70 won against the U.S. dollar as of 3:30 p.m., up 6.4 won from the close of stock trading the day before.

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