BENGALURU: Asian equities retreated on Tuesday from recent record highs as rising expectations of US rate hikes weighed on sentiment, while South Korean shares plunged 10 percent on profit-taking, triggering a temporary trading curb.
Most emerging Asian currencies also came under pressure as a firm US dollar weighed, with the Thai baht down 0.6 percent, hitting its lowest since May 20, 2025, a day ahead of its policy meeting.
Meanwhile, shares in Jakarta fell 1 percent and the rupiah weakened to 17,860 per dollar, ahead of MSCI’s verdict on the country’s market classification, due in early Asian hours on Wednesday.
Globally, the pan-European STOXX 600 index fell 0.89 percent, while oil and gold prices fell more than 1 percent each, as investors assessed US-Iran peace talks.
The MSCI EM Asia equities index dropped more than 4 percent after reaching an all-time high on Monday, dragged lower by the slump in South Korea and Taiwan, which together account for about 60 percent of the benchmark.
The MSCI index was set for its worst session since June 8.
South Korea’s KOSPI, the region’s best-performing stock market so far this year, closed 10 percent lower, marking its largest daily drop since March 4, driven by foreign selling of Samsung Electronics and SK Hynix following regulatory signals that the chip rally had become overheated. Major chipmakers Samsung Electronics and SK Hynix both shed over 12 percent.
Taiwan’s benchmark gauge, another AI-heavy index in the region, slipped 1.3 percent from an all-time closing high seen the previous day.
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