South Korea’s benchmark Kospi index fell sharply late Monday morning, dropping approximately 2% as investors retreated from risk assets amid escalating geopolitical tensions.
The sell-off was broad-based but particularly severe in the technology sector, which led the decline as growth-sensitive stocks faced renewed pressure from rising energy costs and global uncertainty.
The market move reflects deepening caution among traders regarding the fragile status of the U.S.-Iran ceasefire agreement.
As diplomatic talks remain unresolved, fears of renewed conflict have driven oil prices higher, adding to inflationary pressures and weighing on corporate profit expectations.
The energy cost spike is a direct headwind for South Korea, a net energy importer, amplifying the negative impact on equity valuations.
This latest drop extends a period of sustained risk-off sentiment that has plagued Asian markets throughout the week.