BENGALURU: Asian equities saw their sharpest drop in months on Wednesday, led by a 6 percent plunge in South Korea, as investors pulled back from overheated tech stocks on valuation worries, though most markets later pared losses.
The MSCI index of emerging Asia equities and a broader index tracking Asia equities excluding Japan were down over 1 percent in their worst intraday decline since the early April “Liberation Day” tariff turmoil.
Traders hit regional markets hard early on Wednesday, with South Korea’s KOSPI seeing its steepest intraday fall since August last year before closing just above the key 4,000 level.
The KOSPI has surged a staggering 80 percent since April, with more than a third of the gains coming last month. Chipmaker Samsung Electronics has risen 90 percent this year, while peer SK Hynix has more than tripled.
Those gains have firmly positioned the index among the top-performing equity markets globally this year.
Taiwan’s benchmark index has advanced 20 percent this year, driven mostly by a 40 percent rally in TSMC shares.
On Wednesday, South Korea’s KOSPI fell 6.2 percent to drop below the psychologically key 4,000 level, marking its worst intraday decline since August last year. The benchmark index ended the session down 2.9 percent.
The South Korean won extended losses, weakening 0.7 percent to its lowest point since mid-April.
Taiwan’s stocks shed 2.6 percent to fall by the most in three weeks. Its dollar weakened for the sixth consecutive session to hit its lowest point since early May.
Most currency markets in the region were largely on the back foot against a steady US dollar.
The Philippine peso lost 0.5 percent and the Indonesian rupiah inched 0.2 percent lower, continuing to hover around a six-week low.
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