Seoul’s Kospi index fell more than 6% on Thursday, driven by steep losses in technology heavyweights as escalating tensions in the Middle East weighed heavily on investor sentiment.
The decline marks a continuation of the severe risk repricing that began earlier in the week, with the index having dropped 9% on Monday amid similar geopolitical concerns.
The sell-off in Seoul stood in stark contrast to US markets, which rallied on Thursday following benign producer price index (PPI) data.
While US tech giants led gains in New York, South Korean investors liquidated technology holdings, highlighting a divergence in regional market drivers.
The Korean won strengthened against the US dollar as capital flows adjusted to the heightened risk environment.
The persistent pressure on the Kospi underscores the vulnerability of export-oriented Asian markets to geopolitical shocks, particularly when global supply chains and energy routes are perceived to be at risk.