South Korea’s KOSPI Composite Index plunged 6.12% to 7,493.18, making it by far the worst-performing major market in Asia during the session.

The sharp decline reflects aggressive selling in technology and semiconductor sectors, which had previously fueled the market’s powerful rally above 7,000. The move suggests investors rapidly reduced exposure following weeks of strong gains.

Japan’s Nikkei 225 also fell heavily, dropping 1.99% to 61,409.29. The decline pushed the index further away from the 63,000 level and signals a notable shift toward defensive positioning.

Hong Kong’s Hang Seng Index declined 1.62% to 25,962.73, while China’s SSE Composite Index fell 1.02% to 4,135.39, indicating broad weakness across Greater China markets.

India and Australia Also Move Lower

India’s S&P BSE Sensex slipped 0.23% to 75,228.91, extending recent volatility and reflecting continued caution among investors.

Australia’s S&P/ASX 200 edged down 0.11% to 8,630.80, showing comparatively smaller losses but still reflecting the broader regional downturn.

The widespread declines suggest a synchronized pullback rather than isolated weakness in individual markets.

Currency Markets Reflect Risk-Off Sentiment

Currency markets leaned defensive during the session.

The Australian Dollar Index dropped 0.53% to 72.21, signaling weaker appetite for risk-sensitive assets. Meanwhile, the Japanese Yen Index declined 0.30% to 63.15, reflecting mixed safe-haven positioning despite the equity selloff.

The softer Australian dollar aligns with broader weakness in equities and suggests investors are becoming increasingly cautious.

Indonesia Market Closed for Holiday

Regional activity was partially reduced as Indonesia’s Jakarta Stock Exchange remained closed for Ascension Day.

The closure limited participation from Southeast Asia but had minimal impact on the broader regional selloff.

Outlook

Looking ahead, investors will closely monitor whether the sharp decline in South Korea develops into a broader correction across Asia or stabilizes after heavy profit-taking.

Japan’s ability to hold above 61,000 and China’s response to continued weakness will remain key indicators for regional sentiment. Markets are also likely to focus on whether technology and growth sectors can regain momentum after leading recent declines.

For now, Asia’s markets have shifted decisively into a risk-off environment, with volatility rising sharply as investors reassess valuations following an extended rally period.