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, as investors fled high-beta assets amid fears of broader supply chain disruptions and energy price spikes linked to escalating tensions in the Middle East.
The sharp drop underscores the vulnerability of export-oriented Asian economies to geopolitical shocks.
While US markets rallied on benign PPI data earlier in the session, the divergence highlights how regional risk premiums are decoupling from global macroeconomic fundamentals.
Technology stocks, which have been key drivers of the Kospi’s recent performance, faced the steepest losses as traders reassessed exposure to potential shipping bottlenecks and semiconductor supply risks.
This move follows a period of heightened volatility in global energy and shipping markets.