South Korea Market Halted After Sharp Tech Sell-Off
South Korea's stock market was forced to halt trading for 20 minutes after the Kospi index plunged by nearly 9% within minutes of Monday's opening.
The halt is part of a circuit breaker mechanism designed to prevent panic trading and was triggered for the third time this year following a sharp sell-off in technology stocks.
Japan and Other Asian Markets Also Decline
Japan's Nikkei 225 index slid by around 4%, marking its largest drop in three months, as shares of major tech companies fell.
Other Asian stock exchanges, including the Hang Seng Index and the Shanghai Composite, were also down on Monday.
Oil Prices Rise Amid Middle East Conflict
Oil prices rose on Monday, intensifying inflation concerns, after Iran and Israel exchanged strikes for the first time since a ceasefire was agreed between the sides and the US in April.
Trading in South Korea resumed after the circuit breaker was triggered, with the Kospi index down by about 5%.
Major South Korean tech companies experienced sharp declines in share prices, including chipmakers Samsung and SK Hynix.
The tech-heavy Kospi had seen significant gains in recent months due to strong investment in the country's technology sector.
Wall Street Sell-Off Influences Asian Markets
The losses in Asia follow a wave of sharp drops on Wall Street on Friday, where a sell-off in tech stocks caused the Nasdaq to lose around 4%, its biggest decline in over a year.
Investor concerns include doubts about the sustainability of the rally in AI companies and fears of interest rate hikes, driven by a lower-than-expected unemployment rate in April and persistently high inflation linked to the Middle East conflict.
Global Oil Prices Surge
The global benchmark Brent crude price jumped by 3.7% to $96.50 (£72.35) per barrel in Asia on Monday, while US-traded crude rose by around 4% to $94.10 following the exchange of strikes between Iran and Israel.
Details of the Iran-Israel Strikes
Iran's Islamic Revolutionary Guard Corps (IRGC), which launched missiles at northern Israel, warned that the attacks represent the start of "a full week" of strikes.
Israel retaliated with attacks on military targets in Iran despite US President Donald Trump's urging not to respond.
"We are very close to a final deal with Iran. It is going to be a good deal. I don't want it to blow up because of what is happening now," Trump told news outlet Axios.
A ceasefire agreement has been in place since 17 April but has been repeatedly violated by both Israel and Iran.
Market and Expert Perspectives
It remains too early to determine whether the strikes signify a full escalation of the war, but traders are factoring in risks to global oil markets, according to Associate Professor Jiajia Yang from James Cook University in Australia.
"The strikes show that many political issues remain unresolved and oil prices are expected to be volatile unless diplomatic efforts succeed," Yang said.
Oil prices have surged since US and Israel launched strikes on Iran on 28 February and have experienced significant fluctuations throughout the subsequent ceasefire.
Prices have hovered around the $95 mark in the past week as traders assess the long-term impact of the conflict on global energy supplies.
The war has disrupted oil and gas shipments from the Gulf region after Iran threatened to strike vessels attempting to cross the critical Strait of Hormuz trade route in retaliation for US-Israeli attacks.
