South Korea’s benchmark Kospi index reversed sharply late Monday morning, wiping out a substantial early-session rally as selling pressure mounted in the technology sector.
The index had opened 1.73% higher, buoyed by improved sentiment following a pause in US military strikes on Iran, but the positive geopolitical backdrop failed to sustain buying interest.
Big chip shares led the decline, erasing the initial risk-on momentum.
The reversal highlights the fragility of the market's recovery, with both foreign and domestic institutional investors stepping up selling pressure as the session progressed.
The shift underscores how quickly sentiment can deteriorate when sector-specific headwinds outweigh broader macro relief.
This volatility follows a turbulent period for the Kospi, which recently erased early gains to close lower on Tuesday, falling 35.40 points, or 0.38%, to 8,362.96.