South Korea’s benchmark Kospi index opened 1.08% lower on Monday, reflecting renewed investor caution amid unresolved US-Iran peace negotiations.
The decline marks a continuation of the risk-off sentiment that has plagued Asian markets this week, as traders digest fresh uncertainty surrounding the fragile ceasefire agreement and its potential impact on global energy supplies.
Rising oil prices are compounding the pressure on equity markets, with investors increasingly wary of geopolitical escalation in the Middle East.
The sell-off broadened across sectors, though technology stocks drew particular attention as investors scrutinized recent investment announcements from Samsung Electronics and SK hynix.
Both companies have outlined significant capital expenditure plans, which are now being weighed against the backdrop of heightened macroeconomic volatility.
The Kospi’s drop follows a week of heightened geopolitical risk, with US President Donald Trump’s administration facing questions over the durability of the Iran deal.