South Korea's benchmark Kospi index fell more than 6% on Tuesday, marking a severe continuation of the risk-off sentiment that has gripped Asian markets.
The decline was driven primarily by heavy selling in the technology sector, as investors liquidated high-beta holdings amid escalating geopolitical tensions in the Middle East.
The sell-off follows a previous session where the Kospi fell 9%, indicating that investor anxiety is intensifying rather than stabilizing.
The sharp drop in Seoul stands in stark contrast to positive moves on Wall Street, where US stocks rallied on benign producer price data.
This divergence highlights the specific vulnerability of export-oriented Asian economies to regional instability, particularly when supply chain disruptions threaten semiconductor and electronics manufacturing hubs.
According to Yonhap News Agency, the losses were broad-based but concentrated in tech-heavy names.
The sell-off follows a previous session where the Kospi fell 9%, indicating that investor anxiety is intensifying rather than stabilizing.