South Korea’s benchmark Kospi index reversed course on Tuesday, shedding early gains as geopolitical concerns over Iran overshadowed a wave of bargain hunting in the technology sector.
The benchmark opened slightly higher, buoyed by investors moving to buy into battered tech heavyweights, but the rally quickly faded as risk aversion returned.
The reversal highlights the fragile state of sentiment in Seoul markets, where technical buying interest is being repeatedly checked by external geopolitical headwinds.
Despite the initial attempt by traders to capitalize on depressed valuations in the tech sector, the broader market remained cautious, unable to sustain upward momentum against the backdrop of escalating tensions involving Iran.
This session follows a period of heightened volatility for Korean equities.
On Monday, the Kospi opened lower, weighed down by renewed uncertainty surrounding US-Iran peace negotiations.