South Korean shares tumble, won hits 17-year low on Mideast conflict

South Korean shares dropped more than 6% on Monday to close at their lowest level in two weeks, while the won weakened to a 17-year low, ‌as heightened Middle East tensions dampened appetite for riskier assets, Report informs via Reuters.

US President Donald Trump and Iran threatened to escalate their war by attacking energy facilities in the Gulf, a potential widening of hostilities which could deepen a regional crisis and add to concerns in global markets.

The benchmark KOSPI closed down 375.45 points, or 6.49%, at 5,405.75, marking its lowest level since March 9 and the biggest daily percentage loss since March 4.

The index extended losses even after ⁠a trading curb was activated on the index earlier in the session. It was the fourth time a sidecar curb was triggered just this month due to heightened volatility sparked by the Middle East conflict.

The won was quoted 0.83% lower at 1,517.3 per dollar on the onshore settlement platform, hitting its lowest level since March 2009.

"Hopes are fading that the war will end soon," said Huh Jae-hwan, an analyst at Eugene Investment & Securities.

"We don't have to be too pessimistic because Asian countries are in a stronger position than before thanks to robust tech sectors, while the government is also planning an extra budget. However, the market's patience has become weak," Huh said.