Asian Stocks Plunge After Rally; KOSPI Down 1.6%, Nikkei Drops Nearly 800 Points

Asian stock markets experienced a significant sell-off on Friday, abruptly halting a rally that had boosted investor confidence earlier in the week. The downturn erased earlier gains, with major indices showing substantial losses.

South Korea's KOSPI index tumbled by over 1.6%, falling below the 6800-point mark. Similarly, Japan's Nikkei 225 index saw a steep decline, dropping nearly 800 points in early trading. The sell-off followed a mixed performance in the US market on Thursday, where the Dow Jones Industrial Average fell 1.32% and the S&P 500 declined 0.87%, although the Nasdaq managed a slight gain.

Investor sentiment was dampened by several factors, including the US Treasury's announcement to expand its buyback operations for 10-year to 30-year bonds. This move raised concerns about rising borrowing costs potentially impacting the ongoing bull market. Additionally, rising oil prices added to market anxieties, contributing to the broader risk-off sentiment across global financial markets.