Asian stock markets took a pounding Monday,tech shares leading a mass sell-off. South Korea's Kospi index nosedived, triggering a 20-minute trading halt as it plunged almost 9% right after opening. It ended down 8.3%,while Japan's Nikkei dropped 3.9%. European markets opened lower,though not as badly hit as Asia.
U.S. markets? Different story. Tech-heavy Nasdaq rose 1.2%,S&P 500 up 0.7%,and Dow Jones added 0.2%. This after Friday's steep fall, sparked by strong U.S . jobs data stoking fears of persistent high interest rates.
Market chaos deepened as oil prices jumped with fresh military clashes between Iran and Israel. First flare-up since April's ceasefire. Oil surged, Brent crude up 4.6% to $97.34 barrel,then dipped back to around $94 when Iran said it would stop strikes on Israel.
Charu Chanana,chief investment strategist at Saxo,said traders face "messy mix" of shocks,tech sector hit hard,rising energy costs adding pressure. Kospi and Nikkei vulnerable,heavy on tech stocks. Kospi's trading halt third this year,aimed at stopping panic selling.
South Korean tech giants took big hits,Samsung's shares down 10%,SK Hynix also slumping. Yet President Lee Jae-myung showed optimism,calling domestic stocks "slightly undervalued." Kospi had strong gains lately,driven by tech investor enthusiasm.
Investors now want proof AI demand turns into real revenue,she noted. Reflects wider caution,increasing preference for tech firms with steady income,dividends.
Elsewhere in Asia,markets mirrored downturn,Hang Seng Index,Shanghai Composite both closed lower. Taiwan's Taiex also dropped sharply,3% fall in TSMC shares,key Nvidia supplier. Nvidia CEO Jensen Huang said tech stock dip might be a buying chance for investors.
Geopolitical tensions high,Iran's military moves seen as response to April ceasefire violations. James Cook University's Jiajia Yang said traders watching risks to global oil markets,political issues could keep oil prices unstable.
Since U.S.,Israel started strikes on Iran in February,oil prices swung wildly,hovering around $95 in recent weeks. Ongoing conflict disrupted Gulf oil,gas shipments,raising fears over energy flow stability through vital Strait of Hormuz…
