Japanese stocks plummeted, with the Nikkei 225 index closing down 4.8%. In South Korea, the market also took a heavy hit on Monday, declining by over 2%. Major exporters underperformed due to fears that a stronger Korean won might reduce overseas demand and hurt export profitability. The Korean won tracked the Japanese yen's sharp rise, reaching a near nine-month high.
The Korea Composite Stock Price Index (KOSPI) ended down 2.13% at 2593.27 points, marking the lowest level since September 19 and the largest single-day percentage drop since September 4. The index has fallen nearly 1% this month, recording a monthly decline for the third consecutive month.
Foreign investors net sold stocks worth 1 trillion Korean won ($764.35 million). Analysts at NH Investment & Securities pointed out that foreign investors offloaded shares across all sectors, with export stocks particularly affected by the Korean won's significant rise following the yen's recent surge.
Among the affected stocks, Samsung Electronics (005930, Financial) saw a 4.2% drop to its lowest level since late March 2023. SK Hynix also fell by 5%. In the automotive sector, Hyundai Motor and its sister company Kia Motors declined by 4.1% and 4.7%, respectively.
