Japanese and South Korean stock markets plunged amid selling pressure from last week and ahead of the Federal Reserve's interest-rate decision. The KOSPI fell 3.27% and the Nikkei Average fell 1.76%, while major stocks including Samsung Electronics, SK hynix, SoftBank and Kioxia also declined sharply across the board.
Japanese and South Korean stock markets opened sharply lower amid selling pressure from last week and growing caution ahead of the Federal Reserve's interest-rate decision. South Korea's KOSPI Index fell sharply at the open as investors stepped up their risk aversion.
The KOSPI fell 3.27% and the Nikkei Average fell 1.76%, while major technology and semiconductor stocks including Samsung Electronics, SK hynix, SoftBank and Kioxia declined across the board.
The market backdrop included expectations that a stronger yen, driven by prospects of a Bank of Japan rate hike, would weigh on earnings outlooks for exporters, as well as investors remaining on the sidelines over the extension of trading hours in the South Korean market and heightened risk aversion ahead of US monetary policy decisions. Foreign capital has temporarily shifted to a wait-and-see stance or begun flowing out.
The day's trading was marked by declines in major stocks across Japan and South Korea, with external and domestic factors combining to weigh on the broader market.