South Korean equities led a broad regional selloff on Monday after sharp declines in precious metals and renewed risk aversion rippled through Asian markets following volatile moves in commodities and cryptocurrencies.
The KOSPI plunged more than five percent to 4,949.67 while KOSPI 200 futures tumbled as much as five percent, triggering a temporary trading halt as authorities intervened to calm disorderly conditions.
Heavyweight technology names bore the brunt of the pressure as SK Hynix slid 8.69 percent and Samsung Electronics dropped 6.29 percent amid widespread liquidation across large capitalization stocks.
The small-cap Kosdaq index also suffered steep losses, falling 4.44 percent to close at 1,098.36 as investors reduced exposure to higher volatility growth segments.
China Manufacturing Data Offers Limited Comfort
A private survey showed China’s factory activity improving modestly in January as manufacturers increased output ahead of the Lunar New Year holiday period.
The RatingDog China General Manufacturing PMI compiled by S&P Global rose to 50.3 from 50.1, matching expectations and marking the strongest reading since October.
A reading above fifty signals expansion, yet the modest improvement failed to offset broader risk-off sentiment sweeping through regional markets.
Japan, Hong Kong And Australia Follow Lower
Japan’s Nikkei 225 declined 1.25 percent to 52,655.18 while the Topix slipped 0.85 percent as investors tracked the regional downturn and reassessed growth outlooks.
Hong Kong’s Hang Seng fell 2.32 percent while the mainland CSI 300 shed 2.13 percent to 4,605.98 amid heavy selling in financial and technology counters.
Australia’s S&P/ASX 200 retreated 1.02 percent to 8,778.6 as weakness in materials and mining stocks mirrored the collapse in gold and silver prices.
Gold, Silver And Bitcoin Extend Volatility
Spot gold fell roughly six percent to $4,538 per ounce after plunging nearly ten percent on Friday when prices briefly dropped below the $5,000 level.
Silver prices mirrored the decline, sliding as much as twelve percent to $74.36 per ounce as traders rushed to unwind positions across precious metals.
Bitcoin also came under pressure during early Asian hours, falling below $80,000 for the first time since April as investors trimmed risk across asset classes.
The cryptocurrency last traded around $76,700, reflecting broader nervousness in global markets following commodity-driven volatility.
U.S. Futures Signal Weak Start To New Month
Futures tied to major U.S. benchmarks pointed lower as trading in Asia progressed, suggesting Wall Street could begin the new month under renewed pressure.
Dow Jones futures dropped 143 points while S&P 500 futures fell 0.6 percent and Nasdaq-100 futures lost nearly one percent in early dealings.
On Friday, U.S. equities ended lower despite investor approval of President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve.
The S&P 500 fell 0.43 percent to 6,939.03 while the Dow slipped 0.36 percent and the Nasdaq Composite underperformed with a 0.94 percent decline.
All three indexes had dropped more than one percent at session lows, highlighting fragile sentiment despite the S&P managing to close January with a modest gain.
