South Korea’s benchmark Kospi index tumbled more than 5 per cent in early trade on Monday, extending losses as technology stocks came under renewed selling pressure amid concerns over the sustainability of the artificial intelligence (AI) investment boom.
The Kospi fell 5.6 per cent to 7,058.82 in morning trading, while semiconductor giant SK hynix dropped 10.1 per cent, despite its US-listed shares surging nearly 13 per cent during their New York debut on Friday.
Samsung Electronics shares declined nearly 7 per cent.
Meanwhile, Japan’s Nikkei 225 dropped 1.3 per cent, and the broader TOPIX index slipped 0.8 per cent. China’s Shanghai Composite index declined 0.7 per cent, while the blue-chip CSI 300 slipped 0.3 per cent.
Hong Kong’s Hang Seng index was largely unchanged in trading. Australia’s S&P/ASX 200 edged down 0.3 per cent, while Singapore’s Straits Times Index fell 0.2 per cent.
Technology stocks, which have driven much of Asia’s market rally this year, were among the biggest losers as investors trimmed exposure to richly valued sectors.
Market sentiment weakened after geopolitical tensions escalated again over the weekend.
Oil prices gained amid concerns that renewed US-Iran tensions could disrupt crude flows through the Strait of Hormuz.
Brent crude, the international benchmark, rose 3 per cent to around $78 a barrel at the start of Asian trading, while US benchmark West Texas Intermediate (WTI) gained nearly 4 per cent to about $79 a barrel, according to Financial Times.
The US military said it carried out another round of strikes on Iran overnight into Monday, stating that the operation was intended “to degrade their ability to attack commercial ships freely transiting the Strait of Hormuz”. The latest strikes followed US attacks on Sunday after Iran targeted a container ship in the strategic waterway a day earlier.
The latest exchange further escalated tensions across the region. Iran responded to the earlier US strikes by launching attacks on Bahrain, Kuwait, Qatar, Jordan and Oman. The escalation has also put ongoing talks between Tehran and Washington, aimed at securing a permanent end to the conflict, at risk of breaking down.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Akshat Mittal is the Chief Copy Editor at ET NOW with over 6 years of experience, specialising in Markets, Personal Finance, and General News. Before joining ET NOW, he worked with prominent media organisations and has reported on numerous major events firsthand.
He has also conducted several high-profile interviews on topics such as the 8th Pay Commission and the IMF’s loan to Pakistan amid Operation Sindoor.
Akshat has been involved in numerous key business launches, covering these events on the ground. His articles are widely published in national magazines and newspapers, where he has conducted several interviews with prominent political figures.
He was the first to bring out the IMF spokesperson’s statement on the voting pattern of the Executive Directors, following reports claiming that ‘no is not an option’ in the IMF voting procedure.
Akshat is passionate about public speaking and has delivered numerous lectures at colleges and schools. He also served as a member of a Youth Parliament in Delhi.
