- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.40-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,358-0.48%
- October 13, 202617°
- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.40-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,358-0.48%
- October 13, 202617°
Asian Markets Plunge Sharply Amid Iran-Israel Conflict
Major Asian stock markets faced heavy selling pressure as the conflict between Iran and Israel reignited and expectations of a US interest rate hike intensified. South Korea's main index KOSPI fell about 9% in early trading, triggering a circuit breaker.
Major Asian stock markets sharply declined as tensions between Iran and Israel escalated again and the likelihood of a US interest rate hike increased. The sell-off wave in the region particularly hit technology stocks.
South Korea's main index KOSPI dropped about 9% in morning trading, activating the circuit breaker. This mechanism halts trading for 20 minutes to limit panic selling and was triggered for the second time this year.
The Korea Exchange last activated the circuit breaker on March 4, when the index fell a record 12.06%.
After trading resumed, KOSPI closed the day down 8.29%. South Korea's two largest companies by market value, Samsung Electronics and SK Hynix, also suffered heavy losses.
Samsung Electronics shares fell 10.2%, while SK Hynix shares dropped 7.6%. This decline highlighted the strength of the sell-off in high-value technology stocks in the region.
Japan, China, Hong Kong, and Taiwan Also Declined
Other major Asian markets also turned negative. Japan's Nikkei 225 index fell 3.9%, Shanghai Composite Index dropped 1.7%, and Hong Kong's Hang Seng Index declined 1.3%.
Taiwan's TAIEX index also fell 3.5%. The index is heavily weighted by TSMC, the world's largest contract chip manufacturer.
The market decline was not limited to stocks. The global oil benchmark Brent crude rose 3.7%, surpassing $88.50 per barrel.
Wall Street Pressure Reflected in Asia
The sell-off followed stronger-than-expected US employment data released last week, which increased expectations for a Federal Reserve rate hike.
On Friday, all three major Wall Street indexes closed lower. The tech-heavy Nasdaq Composite fell 4.18%, marking its worst day since April 2025.
Market analyst Fabien Yip said the sharp declines came after a major correction in US tech stocks. He also noted that the strong gains seen in AI-related stocks over the past two months have started to weaken.
Yip added that the weakness in the South Korean won and potential tightening in the country could add further pressure on leveraged positions.
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