Asia-Pacific Markets Reel Amid Geopolitical Shock
Monday saw violent swings across Asia-Pacific equities as rising tensions in the Middle East spooked investors. South Korea's KOSPI tumbled 7.25%, marking its steepest single-day drop since August 2024 and ranking among the world's worst performers.
Tech Sector Leads the Sell-Off
In Seoul, heavyweight semiconductor and tech exporters were hit hardest, with major firms shedding more than 8% in value. Analysts warn that renewed fears over supply chain disruptions have shaken confidence in export-reliant economies.
- KOSPI records worst day since August 5, 2024
- Nikkei 225 drops 3.06%, its largest decline since November 2025
- TOPIX hits multi-month lows, signaling broad market distress
Japan Joins the Downward Spiral
Japan’s market followed suit, with the Nikkei shedding over 1,000 points. The broader TOPIX posted its biggest fall since April 2025. Traders cite rapid capital outflows and algorithmic selling as key drivers behind the accelerated decline.
For now, eyes are on U.S. Treasury yields and Fed messaging to gauge the next move in global risk appetite. Without a de-escalation in geopolitical risks, further pressure on Asian markets appears inevitable.