South Korea's Kospi index opened sharply lower on Monday, dropping 3% at the start of trading as markets reacted to the intensifying conflict between the United States and Iran.

The steep decline marks a significant escalation in risk-off sentiment across Asian equity markets, with semiconductor stocks bearing the brunt of the selling pressure.

The broad-based selloff reflects growing investor anxiety over potential supply chain disruptions stemming from the geopolitical standoff.

Fresh strikes in the region have reignited fears that energy and logistics routes could be compromised, prompting a rapid repricing of risk assets.

Semiconductor-heavy indices in Asia were particularly vulnerable, as traders weighed the dual threat of geopolitical instability and ongoing sector-specific headwinds.

Asian equity markets opened lower across the board, weighed down by the escalating military tensions.