SEOUL, March 26 (AJP) — Asian equities fell across the board Thursday as oil prices hovered near the $100-per-barrel threshold and geopolitical tensions deepened, with Seoul markets brushing off the government’s so-called “wartime” response.
Despite tentative talk of an endgame to the Middle East conflict, markets showed little conviction. Risk aversion held firm across the region.
Japan’s Nikkei 225 slipped 0.3 percent to 53,603.7, China’s Shanghai Composite fell 1.1 percent to 3,889.1, Hong Kong’s Hang Seng dropped 2.1 percent to 24,804.8 and Taiwan’s TAIEX edged down 0.3 percent to 33,337.6.
But the heaviest selling pressure landed in Seoul — a clear vote of no confidence in the government’s emergency package.
The benchmark KOSPI plunged 3.2 percent to close at 5,460.5, after swinging between an intraday high of 5,598.4 and a low of 5,448.1, reflecting a familiar pattern of institutional and foreign selling met by retail dip-buying.
Foreign investors dumped 3.09 trillion won ($2.10 billion), with institutions offloading an additional 339 billion won. Retail investors stepped in as the sole net buyers, purchasing 3.05 trillion won.
The tech-heavy KOSDAQ fell 2.0 percent to 1,136.64, with foreigners selling 301.6 billion won and institutions shedding 134.1 billion won, while retail investors bought 484.9 billion won.
Heavyweight tech names led the decline. Samsung Electronics dropped 4.7 percent to 180,100 won and SK hynix slid 6.2 percent to 933,000 won, as concerns mount over a slowdown in AI-driven investment. Hyundai Motor fell 2.2 percent and LG Energy Solution lost 2.4 percent.
The government said it had deployed “all possible policy means and mix,” ranging from deeper fuel tax cuts to supplementary budgeting and bond market stabilization measures.
Markets, however, were unconvinced — reading the package less as decisive intervention than as a sign policymakers are running short on options beyond short-term fixes.
That skepticism was most visible in the bond market.
The buyback offered only a modest lift to short-dated debt while triggering a selloff at the long end, effectively flipping the policy signal on its head. The two-year government bond yield fell 2.2 basis points to 3.489 percent, with the three-year largely unchanged at 3.552 percent.
Further out the curve, yields surged: the 20-year rose 3.9 basis points to 3.880 percent and the 30-year climbed 4.6 basis points to 3.762 percent — a steepening move that signals investors are demanding higher long-term risk premiums despite near-term liquidity support.
In effect, the market is pricing in persistent inflation and supply-side risks tied to the oil shock, even as authorities attempt to contain immediate volatility.
The Korean won weakened to 1,507 per dollar, reinforcing the broader risk-off mood.
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