Stories

Mon, 08 Jun 2026

Mon, 08 Jun 2026 Tech stocks plunge in Asia after record rally and renewed Middle East attacks

Markets in South Korea and Japan slid after a rally in tech stocks in recent weeks.

* South Korea's stock market halted trading for 20 minutes due to a nearly 9% drop in the Kospi index within minutes of opening on Monday.
* The halt was triggered by a circuit breaker mechanism designed to prevent panic trading, marking the third time this year after a sharp sell-off in tech stocks.
* Japan's Nikkei 225 index fell by around 4%, with major tech companies' shares declining.
* Oil prices rose, fueling inflation concerns, following strikes between Iran and Israel for the first time since a ceasefire was agreed in April.
* The "messy mix" of shocks to the market includes: + Tech stocks being overvalued + Rising energy prices + Repositioning by investors due to AI demand uncertainty
* Markets like the Kospi and Nikkei are particularly exposed to these shocks, given their dominance by tech stocks.
* Trading in South Korea resumed after the circuit breaker was triggered, with the Kospi index down around 5%.
* Major South Korean tech companies' share prices were sharply lower, including Samsung and SK Hynix.
* The South Korean President said volatility is expected but domestic shares are "slightly undervalued".
* Other Asian stock exchanges also declined on Monday, following a wave of sharp drops on Wall Street on Friday.
* Oil prices surged due to the conflict between Iran and Israel, with Brent rising by 3.7% to $96.50 per barrel.
* Traders are pricing in risks to global oil markets, with concerns that the strikes may escalate into a full-scale war.