The iShares MSCI South Korea ETF (EWY) fell 5.00% intraday, reflecting heightened volatility as South Korean financial markets remained closed for a holiday.
The ETF's decline occurred despite the underlying market being shut, which can lead to pricing discrepancies and increased uncertainty among traders. Regional market sentiment also turned negative, with Japan's Nikkei 225 index opening 1.5% lower on declines in securities and automobile stocks.
Investors may be adjusting positions ahead of South Korea's market reopening on Tuesday, anticipating potential catch-up moves or reacting to broader Asian market pressures.