In early trading on the 9th, Hyundai Motor and Kia shares are plunging. The sell-off in automakers is seen as stemming from expectations that the Middle East war will be prolonged and a surge in international oil prices.
As of 10:05 a.m. that day, Hyundai Motor was trading at 501,000 won on the Korea Exchange, down 52,000 won (9.40%) from the previous session. At the same time, Kia was also trading at 153,900 won, down 13,100 won (7.74%).
Auto parts affiliates Hyundai Mobis (-9.23%) and Hyundai Glovis (-8.62%) are also declining.
This is seen as due to expectations of a prolonged war and a surge in international oil prices.
Market research firm Bernstein said on the 8th that if the Iran war is prolonged, companies with significant market share in the Middle East auto market, such as Japan's Toyota and Korea's Hyundai Motor, could be affected. It also noted that if oil prices rise due to the impact of the war, automakers with high dependence on internal combustion engine vehicles could be hit.
Meanwhile, according to Bloomberg, around 7 a.m. that day, both Brent crude and West Texas Intermediate (WTI) topped $100 per barrel.