Seoul’s benchmark Kospi index extended losses late Monday morning, diverging from positive moves on Wall Street as renewed geopolitical tensions in the Middle East dampened investor sentiment.
The decline was broad-based but particularly acute in the technology sector, where chipmakers led the index lower amid growing risk-off pressure.
South Korea’s Kospi had already opened sharply lower earlier in the week, dropping approximately 3% at the start of trading as markets reacted to intensifying conflict between the United States and Iran.
The sell-off marks a continuation of the volatility that has plagued Asian equities in recent days.
South Korea’s Kospi had already opened sharply lower earlier in the week, dropping approximately 3% at the start of trading as markets reacted to intensifying conflict between the United States and Iran.
The persistent downward pressure underscores how quickly geopolitical shocks can override broader global market trends, even when US equities are posting gains.
The semiconductor sector remains the primary transmission mechanism for this geopolitical risk in South Korea.