South Korean shares opened sharply lower on Wednesday, dragged down by overnight losses on Wall Street, with rising bond yields and firmer oil prices weighing on technology stocks and dampening investor sentiment. The benchmark Korea Composite Stock Price Index (KOSPI) fell 341.06 points, or 4.96%, to 6,528.77 points at the opening bell, extending its decline to 6% shortly after, which prompted the Korea Exchange to activate the Sidecar mechanism, temporarily suspending program selling on the KOSPI.

All major US indices closed lower overnight, as stalled peace negotiations between the US and Iran weighed on market mood while pushing oil prices higher. The Dow Jones Industrial Average slipped 0.22%, the S&P 500 fell 0.69%, and the tech-heavy Nasdaq Composite dropped 1.33%. Concerns that elevated energy costs could keep inflation sticky pushed the 30-year US Treasury yield to its highest level since 2007.