Seoul’s benchmark Kospi index fell more than 6% on Thursday, 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, with major heavyweights leading the downturn.
This sharp drop occurred despite positive moves on Wall Street, highlighting a growing divergence between US and Asian equity markets amid escalating geopolitical uncertainty.
The sell-off reflects deepening investor anxiety over tensions in the Middle East, which have persisted since late Monday.
While US stocks rallied on benign producer price index data, South Korean investors remained focused on the geopolitical risks that threaten supply chains and global growth prospects.
The broad-based nature of the decline suggests that the pressure is not limited to specific stocks but is a systemic reaction to the external environment.