Kospi Plunges 8.3% Amid Tech Sell-Off, Iran-Israel
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- South Korea's Kospi index dropped 8.3% and triggered a 20-minute trading halt, its third circuit breaker activation this year, driven by a sharp sell-off in tech stocks.
- Nasdaq closed 0.9% higher on Monday after Friday’s 4% drop — its largest in over a year — as investors repositioned amid concerns over AI investment valuations.
- Oil prices rose on Monday after Iran and Israel exchanged strikes for the first time since April’s ceasefire, reigniting inflation fears tied to Middle East instability.
- Samsung and SK Hynix shares fell sharply, with Samsung closing down 10%, contributing to the broader tech-led decline in Asian equity markets.
- Charu Chanana, Saxo’s chief investment strategist, said markets are facing a 'messy mix' of shocks, with investors now demanding proof that AI demand translates into real revenue.
Why it matters: Tech-heavy markets like South Korea and Japan face outsized risk from valuation corrections, and renewed Middle East conflict raises the stakes for energy-sensitive inflation — a double pressure point for central banks holding rates high.
