South Korea’s benchmark Kospi index opened 0.91% lower on Monday, as investors remained cautious ahead of clarity on US-Iran diplomatic negotiations.
The decline marks a continuation of the risk-off sentiment that has weighed on Asian markets this week, with traders wary of potential escalation in the Persian Gulf.
The sell-off reflects broader unease over geopolitical stability rather than domestic economic data.
With peace talks between Washington and Tehran unresolved, market participants are pricing in a higher risk premium for emerging-market assets, particularly those with significant energy import exposure like South Korea.
This follows a similar drop earlier in the week, when the Kospi opened 1.08% lower on Monday amid the same diplomatic stalemate.
The persistent downward pressure suggests that until a breakthrough occurs in the negotiations, equity markets in the region will likely remain volatile and sensitive to any headlines from the Middle East.