Japan and South Korea Stocks Extend Decline, Nikkei 225 Index Falls Below 55,000

TradingKey - On March 4, the major stock indices in Japan and South Korea opened under pressure. The KOSPI opened 3.44% lower, with intraday losses widening to 6% at one point before narrowing; KOSPI 200 index futures fell 5%, triggering a 5-minute program trading halt.

Notably, the benchmark index's year-to-date cumulative gain remains around 29%.

Regarding individual stocks, SK Hynix gapped down 5% at the open but later rebounded to flat; Samsung Electronics also saw its losses narrow but remained down over 2%.

In the Japanese market, the Nikkei 225 index opened 1.4% lower and continued to slide, breaking below the 55,000-point psychological level during the session. Heavyweight stocks performed weakly, with SoftBank Group and Mitsubishi UFJ Financial Group (MUFG) falling nearly 4%.

On March 3, affected by escalating tensions in the Middle East, Japanese and South Korean stock markets experienced sharp declines: the South Korean KOSPI index closed down 7.24%, while both the Nikkei 225 and TOPIX fell by more than 3%.

Although U.S. stocks recovered some ground overnight following relevant statements, geopolitical panic and inflation concerns have not dissipated. Asia-Pacific markets continued to face pressure today, marking the third consecutive trading day of significant declines for regional equities.