Stock markets in Seoul and Tokyo experienced significant declines, with the KOSPI dropping nearly 10% and Japan's benchmark index falling about 4% on June 23, 2026, primarily due to a slump in tech stocks [1]. The midday trading on June 24 saw both markets flat, following the previous day's steep losses [1]. Analysts attributed the selloff to a combination of global risk-off sentiment, profit-taking in high-performing tech names, and concerns over valuations, describing the event as a correction rather than a breakdown [1].
Technical analysis highlighted key support and resistance levels: the KOSPI's support is at 8,500 and resistance at 9,000, while the Nikkei's support is pegged at 67,000 with resistance above 70,000 [1]. Market sentiment remains cautious, with traders closely monitoring tech shares for signs of stabilization [1].
Investors are advised to watch trading volumes and price action, as further downward pressure could lead to retesting of support levels [1]. A rebound in semiconductor stocks, particularly in South Korea where SK Hynix and Samsung are closely watched, could trigger renewed momentum [1].
Overall, analysts suggest a wait-and-see approach amid elevated volatility and heightened uncertainty in Asian markets, especially given the heavy concentration of tech sectors within both Seoul and Tokyo exchanges [1].
CONCLUSION
The sharp declines in Seoul and Tokyo markets were driven by tech stock volatility, with analysts viewing the move as a correction. Market sentiment is cautious, and further downside or a rebound in semiconductor stocks could significantly impact momentum. Investors are advised to remain vigilant amid ongoing uncertainty and elevated volatility.