Seoul shares down 2% late Monday morning on tech losses, Iran uncertainty

Financial data is displayed on a screen at Hana Bank's dealing room in Seoul, Monday. Yonhap

Korean stocks traded sharply lower late Monday morning as investors remained cautious amid renewed concerns over the fragile U.S.-Iran ceasefire and rising oil prices, with tech shares leading losses.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 170.78 points, or 2.03 percent, to 8,240.43 as of 11:20 a.m., after opening 0.91 percent lower.

Oil prices climbed after the United States and Iran exchanged fresh strikes over the weekend, raising renewed concerns over energy supplies and shipping traffic through the Strait of Hormuz.

The two sides agreed to halt recent hostilities in the Gulf and renew talks, according to reports.

On Friday, the S&P 500 slipped 0.05 percent and the Nasdaq composite declined 0.24 percent, while the Dow Jones Industrial Average fell 0.09 percent.

Investors also remained on the sidelines ahead of the expected announcement of major long-term investment plans by chip giants Samsung Electronics and SK hynix at a meeting chaired by President Lee Jae Myung later in the day.

Market bellwether Samsung Electronics fell 5.15 percent, and chip giant SK hynix retreated 3.29 percent.

Artificial intelligence investment firm SK Square sank 7.62 percent, while battery maker LG Energy Solution jumped 14.18 percent.

The Korean won was trading at 1,542.65 won against the U.S. dollar at 11:20 a.m., down 10.65 won from the previous session.