Weighed down by weakness in chip stocks and a sharp plunge in precious metal prices, South Korea's benchmark KOSPI index saw its maximum decline reach 2.7%, highlighting the fragility of sentiment in global financial markets. Shares of Samsung and SK Hynix fell sharply by up to 3.3% and 5.3% respectively, before paring some of their losses. The KOSPI's decline subsequently narrowed to around 1%.

Daishin Securities analyst Kyoung-Min Lee wrote in a research report, "Although the KOSPI has opened up some upside potential to test the 5,800-point level, the current market needs to cool down from short-term overheating; a corrective phase is necessary before it can continue to climb higher." As signs of fatigue emerge in the market rally, uncertainties related to Trump are intensifying; the nomination of Kevin Warsh as the next Fed Chair has further stoked concerns over liquidity.

Both foreign and domestic institutional investors were net sellers of KOSPI constituent stocks, while retail investors bought against the trend. The KOSDAQ index dramatically narrowed its losses, nearly erasing an earlier decline that had reached as much as 3%.