Iran War Turns Once-Hot Korean Stock Trade Into Poor Bet

The bullish chorus on South Korean equities is cracking as the Iran war exposes the vulnerability of a rally narrowly built on a handful of growth stocks.

By far the world’s best-performing market before Middle East tensions flared up, Korean equities have been sold off heavily as a jump in oil prices dampened the outlook for the energy-dependent economy. At the same time, optimism over memory chip demand has started to cool.