South Korea’s benchmark Kospi index fell for a second consecutive session on Thursday, driven by sustained selling from foreign investors as geopolitical risks in the Strait of Hormuz continued to unsettle Asian markets.
The decline marks a reversal from earlier optimism, where technology sector buying had briefly offset concerns over global trade route disruptions.
The market’s weakness reflects growing investor caution regarding potential supply chain bottlenecks and energy price volatility stemming from escalating tensions in the Persian Gulf.
Foreign capital outflows have accelerated, signaling a risk-off posture among international traders exposed to Asian equities.
This follows a volatile week for the Kospi, which opened sharply lower on Wednesday before attempting a recovery.
The broader regional sentiment is being shaped by reports that Iran and Oman have proposed barring hostile vessels from the Strait of Hormuz, a move that has lifted oil prices and heightened fears of shipping disruptions.