FTSE Straits Times Index fell as much as 2.9% intraday, its largest single-day percentage decline since October.

MSCI chairman and CEO Henry Fernandez said on Friday MSCI needs to see Korea’s regulatory reforms actually implemented before it will upgrade the market to developed-market status, adding that all parties must work together to complete the final stage. Upgrading from emerging to developed market is a key pledge of South Korea’s Lee. Since taking office in June 2025, Lee’s government has rolled out market and tax measures to support domestic equities. In July Korea opened its FX market to allow 24‑hour trading of the won to bolster its case for an upgrade. Korean regulators are also weighing steps to narrow the long-running valuation discount versus peers, including broader English disclosure, pushing firms to raise dividends and publicly flagging companies with very low P/B ratios.

A-share power grid equipment sector advanced; Taiyang Cable hit the daily limit; Caneng Power, Jiangsu Huachen, Huaming Equipment, Honglida and Zhongli Group also rose.