Asia-Pacific markets sold off sharply this week, with South Korea’s benchmark index bearing the brunt of the pressure as regional risk appetite soured.

Kospi Drops More Than 5%

South Korea’s Kospi closed 5.35% lower, prompting the Korea Exchange to briefly halt sell-side program trading through a “sidecar” mechanism designed to curb excessive volatility.

Japan Also Under Pressure

Japan’s Nikkei 225 fell 2.11%, while the broader Topix index declined 1.37%, as the selloff spread across the region’s major equity benchmarks.

Mixed Picture Elsewhere

Australia’s S&P/ASX 200 slipped modestly, while mainland China’s CSI 300 also edged lower. Hong Kong’s Hang Seng Index was a notable exception, closing higher even as neighboring markets struggled.

What Drove the Selloff

The declines came against a backdrop of renewed Middle East tensions and rising oil prices, which weighed on risk sentiment across export-driven Asian economies.