Equity losses extended across the region. Japan’s Nikkei 225 fell 1.25% to 52,655.18 and the broader Topix slipped 0.85% to 3,536.13. In Hong Kong, the Hang Seng index declined 2.32%, dragged lower by technology and property names. Mainland Chinese shares likewise retreated, sending the CSI 300 down 2.13% to 4,605.98. Australia’s S&P/ASX 200 shed 1.02% to 8,778.60, erasing part of last week’s gains.
Pressure was not limited to equities. Precious-metal markets registered further losses after Friday’s steep sell-off. Spot gold dropped around 6% to trade near $4,538 per ounce, following a nearly 10% plunge at the end of last week that pushed prices below $5,000. Silver fared worse, tumbling as much as 12% to approximately $74.36 per ounce. Analysts attributed the moves to profit-taking and a shift toward cash as volatility intensified across multiple asset classes. The London Bullion Market Association continued to flag thin liquidity conditions, noting that holiday-related closures in parts of Asia could exaggerate price swings.
Digital assets also weakened. Bitcoin slipped below $80,000 for the first time since April and last traded near $76,700, reflecting a broader reduction in risk appetite. Traders cited the concurrent falls in gold and silver as an additional catalyst for liquidating speculative positions in cryptocurrencies.
The shaky sentiment carried into U.S. pre-market activity. Futures tied to the Dow Jones Industrial Average dropped 0.3%, or 143 points. S&P 500 futures were down 0.6%, and Nasdaq-100 contracts lost nearly 1%. The declines followed a negative close on Wall Street Friday, when major indexes logged their third consecutive daily loss despite ending January with modest overall gains. Technology stocks were again the primary laggards, overshadowing relief created by President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh to lead the U.S. central bank.
Market participants in Seoul pointed to several overlapping headwinds. First, semiconductor shares have come under renewed scrutiny after a rally earlier in the month pushed valuations toward multi-year highs. Second, the release of largely in-line Chinese manufacturing data failed to ease concerns about a slow global recovery, particularly in electronics demand. Finally, thin pre-holiday trading volumes across Asia left indices vulnerable to outsized moves when large sell orders emerged.
Local policymakers moved quickly to calm nerves. The Financial Services Commission said it was monitoring conditions and stood ready to employ additional stabilization measures if volatility persisted. Under current rules, a 5% move in Kospi 200 futures triggers a five-minute pause; a 10% drop would lead to a longer suspension.
Despite Monday’s sharp setback, several analysts argued that fundamentals for South Korean exporters remain intact, citing expectations for gradual improvement in memory-chip pricing during the first half of the year. However, they also cautioned that any sustained weakness in Chinese consumer demand or a deeper correction in global technology shares could pressure earnings forecasts.
Investors will watch a series of upcoming data releases for clues about the health of the global economy. South Korea is scheduled to publish revised fourth-quarter GDP figures later this week, while China will release trade statistics for January after the Lunar New Year holiday. In the United States, attention will center on labor-market numbers and testimony from Federal Reserve officials regarding the policy outlook under a potential new chair.
Crédito da imagem: Dukai Photographer | Moment
