Major stock markets across Asia took a dive Monday,hit by renewed clashes between Iran and Israel and fears of US interest rate hikes. South Korea's KOSPI led losses,plummeting nearly 9 percent as investors dumped high-priced AI-linked tech stocks.
Early trading saw KOSPI's circuit breaker kick in for second time this year, halting trading 20 minutes to stem panic. Last activated March 4 when index dropped 12.06 percent. After trading resumed,KOSPI closed down 8.29 percent. A sharp fall from its top spot among major indexes earlier in 2026 .
South Korea's tech giants weren't spared. Samsung Electronics shares tumbled 10.2 percent,SK Hynix fell 7.6 percent. Japan's Nikkei 225 down 3.9 percent,SSE Composite Index in Shanghai off 1.7 percent,Hang Seng Index in Hong Kong slipped 1.3 percent. Taiwan's TAIEX,tied to TSMC, dropped 3.5 percent.
Sell-off coincided with rising military exchanges between Iran and Israel, first since April. US job data last week added to rate hike fears. All three major US indices fell Friday,Nasdaq Composite plunged 4.18 percent, worst since April 2025.
“The sharp declines have been triggered by the large correction in US tech last Friday following blowout numbers on non-farm payrolls,” said Fabien Yip,market analyst at IG Group. He noted strong US jobs figures hit sentiment hard.
Yip also mentioned waning optimism around AI investments hurt Asian tech companies that saw big gains last two months. Warned weaker won and possible tightening measures could strain leveraged positions in South Korea.
As events unfold,Brent crude oil prices surged 3.7 percent, topping $88.50 a barrel,mirroring regional tensions. Investors watch Middle East and US economic moves closely…
