SEOUL — South Korea's benchmark KOSPI index fell 114.01 points, or 1.63%, to 6,863.93 as of 3:19 p.m. local time Tuesday, reversing a sharp early-session rally that had briefly pushed the index back above the 7,200 mark, as institutional selling and renewed concern over Middle East instability weighed on investor sentiment.

The index's dramatic intraday swing unfolded over the course of the trading day. According to Trading Economics, the KOSPI opened Tuesday's session with gains exceeding 3%, briefly reclaiming the 7,200 level for the first time in recent sessions, only to steadily give back those gains as the day progressed. By 1:50 p.m. local time, the index had fallen back to 6,925.65, down 0.75% from the previous session, before losses deepened further into the afternoon close.

According to reporting from the Asia Business Daily, the reversal was driven primarily by heavy selling from institutional investors, who were net sellers of 660.6 billion won during the session, even as both individual and foreign investors remained net buyers. Individual investors purchased a net 373.4 billion won worth of shares, while foreign investors added a net 346 billion won, underscoring a split between retail and foreign buying interest on one side and institutional caution on the other.

The broader shift in sentiment coincided with escalating concerns over instability in the Middle East. According to Trading Economics, global risk appetite was limited Tuesday after the expiration of a 60-day window for the United........

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