The iShares MSCI South Korea ETF (EWY) plummeted 7.26% during pre-market trading on Thursday, reflecting a sharp downturn in sentiment towards South Korean equities.
The decline is primarily attributed to heightened geopolitical uncertainty following a speech by former U.S. President Donald Trump detailing military actions against Iran. Trump claimed a decisive victory that degraded Iran's capabilities and threatened more intense strikes in the coming weeks, including potential attacks on Iranian power plants if negotiations fail. This announcement triggered significant volatility across global financial markets.
The resulting market turmoil directly impacted South Korean stocks, with the Korea Composite Stock Price Index (KOSPI) falling 4.47% in tandem with the broader regional sell-off. As an ETF tracking the MSCI Korea benchmark, EWY's performance is closely tied to the South Korean equity market, leading to its pronounced pre-market drop.
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