South Korean Kospi index fell more than 4% at one point, with chip stocks under pressure and the US striking Iran on the second day.

Investors are concerned about the stability of the AI boom and the impact of the Iran war, causing chip stocks to fall further and dragging down the South Korean Kospi index by as much as 4.4% at one point, hitting its lowest level since May 20. Samsung Electronics, SK Hynix, and SK Square were the biggest factors dragging down the index. The Kospi index in South Korea fell for the second consecutive day, continuing the sharp fluctuations of the week. The small-cap Kosdaq index in South Korea also fell by 3.2% at one point. In early trading on Thursday, the South Korean stock market underperformed other regions in the Asia-Pacific, with the MSCI Asia-Pacific index falling by 1.4% at one point. As of the time of writing, the Kospi index has narrowed its decline to 2.2%.