The reversal in Korean equities, from an early rally back to sizeable losses, highlights how sensitive regional risk appetite remains to any fresh Middle East headline, in this case reports of a potential Hormuz shipping restriction alongside renewed Houthi activity against Saudi Arabia. Earlier:Just as Korean stocks looked set for a strong session, fresh Middle East headlines turned an early rally into a broad decline, while Tokyo's chip and AI names dragged the Nikkei lower even as SoftBank's earnings beat failed to convince investors. The Nikkei fell around 1% as losses in technology names outpaced broader market strength, while the Topix, less exposed to the AI trade, was roughly flat on the day. That strength faded roughly an hour into trading, however, as geopolitical risk in the Middle East resurfaced. The KOSDAQ mirrored the broader retreat, giving back its early strength to trade around 778, down close to 3% on the day.