Seoul stocks reverse gains as tech selloff and Middle East risk weigh

South Korea’s benchmark KOSPI index reversed course late Tuesday morning, shedding early gains as selling pressure mounted in the technology sector.

The reversal occurred despite an overnight rally on Wall Street, highlighting the persistent headwinds facing Asian equities.

The decline was driven primarily by losses in major chip stocks, with Samsung Electronics (047810.KS) and SK Hynix (012450.KS) among the key drag on the index.

Investors appear to be prioritizing risk-off positioning over the positive cues from U.S. markets, as lingering uncertainty over the Middle East continues to dampen sentiment.

This marks a continuation of the volatility seen in Seoul markets.

The KOSPI had already turned lower late Monday morning, reversing earlier gains as both foreign and domestic institutional investors intensified their selling.