South Korean equities fell more than 3% on Wednesday as an escalation in the U.S.-Iran conflict pushed up bond yields and pressured risk assets. The U.S. launched a large-scale airstrike on Iran on Tuesday and Iran retaliated, the most serious flare-up in weeks. Kiwoom Securities analysts said market sensitivity to oil and bond yields has risen. Korea’s August consumer inflation accelerated year-on-year due to a low-compare base but came in below expectations. Heavyweights Samsung Electronics, S

South Korean equities fell more than 3% on Wednesday as an escalation in the U.S.-Iran conflict pushed up bond yields and pressured risk assets. The U.S. launched a large-scale airstrike on Iran on Tuesday and Iran retaliated, the most serious flare-up in weeks. Kiwoom Securities analysts said market sensitivity to oil and bond yields has risen. Korea’s August consumer inflation accelerated year-on-year due to a low-compare base but came in below expectations. Heavyweights Samsung Electronics, SK Hynix and LG Energy Solution slid over 3%; Hyundai Motor and Kia dropped more than 5%.