SEOUL, February 02 (AJP) - Asian equities tumbled on Monday, with South Korean markets suffering steep losses as global risk appetite deteriorated amid renewed uncertainty over U.S. monetary policy, prompting investors to dump risk assets across the region.
South Korea’s benchmark KOSPI fell 5.26 percent to close at 4,949.67, the index’s sharpest single-day decline since April 7, 2025.
The index opened sharply lower and extended losses through the session as foreign and institutional investors accelerated selling. The KOSPI 200 index, which tracks large-cap stocks, slid 5.6 percent to 725.5.
Trading data highlighted the scale of the selloff. Foreign investors sold a net 2.59 trillion won worth of shares on the main board, while institutional investors offloaded 1.99 trillion won. Retail investors moved in the opposite direction, buying a net 4.45 trillion won in an attempt to absorb the market’s decline.
Market heavyweights led losses. Samsung Electronics fell 6.3 percent, while SK hynix dropped 8.7 percent, erasing much of their recent gains. Automakers and battery makers also retreated sharply, with Hyundai Motor down 4.4 percent and Samsung SDI losing 8.7 percent, while Hanmi Semiconductor plunged 11.3 percent.
The Korea Exchange triggered a program trading sidecar at 12:31 p.m., temporarily halting sell orders linked to index futures after sharp declines. The measure slowed selling momentum but failed to reverse negative sentiment.
The tech-heavy KOSDAQ index mirrored the decline, falling 4.44 percent to 1,098.36, its first drop exceeding 4 percent since Aug. 1, 2025. The index briefly slid more than 5 percent during intraday trading as investors reduced exposure to high-growth and high-volatility shares.
The downturn followed renewed uncertainty over U.S. monetary policy after former Federal Reserve governor Kevin Warsh was nominated as the next Fed chair, reviving concerns that policy could turn more hawkish. The development triggered repricing across global markets, lifting the dollar and pushing investors away from risk assets.
Currency and commodity markets also saw sharp moves. The won weakened by 11 won to 1,463 per dollar. Precious metals also fell sharply, with gold sliding 9.9 percent and silver plunging more than 31 percent as investors liquidated positions across asset classes.
The simultaneous selloff in equities, commodities and cryptocurrencies resembled past episodes of risk-off shocks, prompting market participants to label the session a “Black Monday” rout.
Elsewhere in Asia, losses were also widespread. Japan’s Nikkei 225 fell 1.3 percent, while China’s Shanghai Composite dropped 2.5 percent, adding to regional market unease.
Copyright ⓒ Aju Press All rights reserved.