South Korea’s benchmark Kospi index closed lower on Monday, extending a session of cautious trading as investors weighed geopolitical risks against domestic market dynamics.
The decline was driven primarily by weakness in the technology sector, which dragged down the broader index despite mixed signals elsewhere in Asian equity markets.
The sell-off in tech shares mirrored pressure seen across regional benchmarks, including Japan, where AI-related stocks faced similar headwinds.
This divergence highlighted a rotation away from high-growth technology names toward more defensive sectors, as traders sought refuge from the volatility linked to the fragile US-Iran ceasefire.
Rising oil prices further compounded investor anxiety, adding to the risk-off sentiment that has plagued Asian markets in recent days.
The unresolved nature of peace negotiations between the US and Iran continues to cast a shadow over global risk appetite, with energy costs serving as a tangible reminder of the potential for broader disruption.