The KOSPI index fell 3.2% on Monday, marking its steepest one-day decline in over six months, as international investors pulled capital from risk-sensitive assets amid rising fears of a broader Middle East conflict. Energy and defense stocks were hit hardest, with XLE down 4.7% and CL=F surging 6.8% on safe-haven demand.
- KOSPI closed down 3.2% at 2,846.12, its worst daily performance since September 2025
- Foreign investors withdrew $1.8 billion from South Korean equities in one session
- XLE energy sector ETF declined 4.7%, reflecting sector-wide profit-taking
- Crude oil futures (CL=F) rose 6.8% as safe-haven demand surged
- Defense and aerospace stocks in South Korea dropped 5.1% on heightened regional security concerns
- Market volatility index (KVIX) spiked to 28.4, up from 16.7 a week prior
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