The benchmark Korea Composite Stock Price Index(KOSPI) fell sharply on Wednesday as political turmoil in Italy hit global investor sentiment. 

The KOSPI plunged 48-point-22 points, or one-point-96 percent, to close the day at two-thousand-409-point-03.   

The tech-heavy KOSDAQ strengthened, gaining four-point-14 points, or point-48 percent, closing at 874-point-22. 

On the foreign exchange, the local currency weakened four-point-one won against the dollar as buyers sough to invest in the greenback, ending the session at one-thousand-80-point-nine. 

Italy is gripped by political uncertainty after President Sergio Mattarella on Sunday blocked the formation of a coalition government critical of the euro.

An interim government is now set to take office before a new election is held in the coming months, and investors are concerned that Italy could abandon the euro if populist parties win the election. 

This would have major implications for the European financial system, with the political crisis already pulling down global markets.