South Korean Stocks Drop Over 7 Percent Amid Middle East Conflict
The KOSPI shed 452.22 points, or 7.24 percent, to close at 5,791.91, while the smaller KOSDAQ tumbled 55.08 points, or 4.62 percent, finishing at 1,137.70. The KOSPI opened the session already 1.26 percent in the red before hemorrhaging further losses as trading wore on.
The ferocity of the selloff triggered a sell sidecar — a five-minute emergency suspension of program trading orders — after KOSPI 200 futures plunged more than 5 percent, breaching the threshold required to activate the circuit breaker mechanism.
Currency markets were equally shaken. The South Korean won weakened sharply against the U.S. dollar, surging past 25 won per dollar to climb into the mid-1,460 won range — reflecting the broader flight from risk assets gripping the region.
Foreign investors spearheaded the mass exodus from KOSPI-listed equities, dumping shares at an aggressive pace. Retail investors provided a partial counterweight, stepping in with dip-buying activity that helped arrest what could have been an even steeper decline.
With regional tensions showing no signs of easing, analysts warn that further volatility may lie ahead for Seoul's financial markets.
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