Asian stock markets started the week with mixed performance this Monday (20), amid rising tensions in the Middle East and the continuation of United States attacks against Iran, a factor that reduced investors' appetite for higher-risk assets.
The main highlight was South Korea, where the Kospi opened down 0,74%, while the smaller-cap companies index, the Kosdaq, fell 1,66% in early trading.
Selling pressure intensified throughout the session, leading the Korea Exchange (KRX) to activate the mechanism known as sell-side sidecar, temporarily halting automated trading in the market.
The mechanism is triggered when Kospi 200 futures contracts register a drop of 5% or more for at least one minute, suspending programmed trades for five minutes. The measure seeks to contain sharp movements and reduce volatility during moments of strong market stress.
Meanwhile, the markets in China and Hong Kong showed more resilient behavior.
In mainland China, the CSI 300 opened virtually flat after the People's Bank of China kept, for the 14th consecutive month, its main benchmark interest rates unchanged. The decision was already widely expected by the market and reinforced the authorities' strategy of preserving monetary policy stability.
In Hong Kong, the Hang Seng rose 1,52% at the open, driven mainly by gains in healthcare and energy stocks, which offset part of the concerns related to the geopolitical scenario.
In Australia, the S&P/ASX 200 posted a gain of 0,34%, reflecting a relatively positive performance compared with other markets in the region.
Japan's markets remained closed due to a national holiday, reducing trading volume in Asia.
Before the open, futures contracts were already pointing to a cautious session. Hang Seng Hang Seng futures were trading at 24,602 points, above the previous close of 24.562,24 pontos, while S&P/ASX 200 futures were at 8,814 points, compared with Friday's close at 8.796,70 pontos.
Investors continue to monitor the evolution of the conflict in the Middle East, which remains the main risk factor for global markets and could keep volatility elevated on Asian stock exchanges over the coming sessions.