Asia-Pacific Stocks Open Under Pressure, Nikkei 225 Falls Over 2%, KOSPI South Korea Composite Index Falls Over 4%

TradingKey - Amid a persistent geopolitical tug-of-war, rising external uncertainty, and waning market risk appetite, Asia-Pacific stock markets generally opened under pressure on Thursday, with major indices collectively falling and the South Korean market showing a particularly pronounced drop.

During the Asian trading session, the Nikkei 225 fell more than 2% intraday, as Japanese markets followed the downward trend in global sentiment. Meanwhile, the KOSPI was one of the region's hardest-hit major markets, with the index plunging nearly 4% at one point before paring some losses, signaling a sharp decline in risk preference.

Looking at individual stocks, South Korean heavyweights broadly retreated. SK Hynix fell by more than 5%, while Samsung Electronics and Hyundai Motor both dropped over 4%, dragging down the overall index.

Analysts believe this pullback in Asia-Pacific stocks is driven mainly by external risk factors; coupled with earlier gains in certain markets, capital has opted for tactical withdrawals amid heightened uncertainty, amplifying market volatility.

Due to its heavy concentration in technology and cyclical sectors, the South Korean market is more sensitive to shifts in global liquidity and risk appetite, leading to its relatively steeper decline.

As macro and geopolitical factors remain unclear, Asia-Pacific equities may continue their weak and volatile trend in the short term, with market sentiment characterized by caution.