Asian Markets Plunge as Tech Selloff Meets Rising Oil Prices

The BBC reported Monday that Asian markets took a severe beating as a global tech selloff collided with a fresh spike in oil prices, following renewed military exchanges between Iran and Israel.

South Korea Halts Trading as Kospi Craters

South Korea’s stock exchange was forced to suspend trading for 20 minutes after its benchmark Kospi index lost nearly 9% within moments of the opening bell. The halt activated a circuit breaker mechanism, triggered for the third time in 2026, designed to curb panic selling. The index ultimately closed down 8.3%. Japan’s Nikkei fell 3.8%. Shares of chipmakers Samsung and SK Hynix led the South Korean decline, with Samsung closing 10% lower. South Korean President Lee Jae-myung acknowledged expected volatility but maintained that domestic equities remained modestly undervalued.

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What Is Driving the Rout

Investors are navigating a “messy mix” of market shocks, according to chief investment strategist Charu Chanana of Saxo. She described the pain as a repositioning away from AI-linked names, as markets demand proof that artificial intelligence spending has produced genuine revenue. “The burden of proof has gone up,” she said, per the BBC. Analyst Susannah Streeter of Wealth Club added that investors are rotating toward tech names with steadier income and dividends, as anxiety over lofty valuations intensifies.

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Background: Friday’s Wall Street Selloff Set the Stage

The Asian rout extended losses that began Friday on US markets, where the Nasdaq shed roughly 4% in its steepest single-day drop in over a year. Stronger-than-expected US jobs data stoked fears of further Federal Reserve rate hikes, while persistently elevated inflation tied to Middle East conflict compounded the pressure. Taiwan’s Taiex also fell sharply, with semiconductor giant TSMC sliding 3%. European markets opened softer, with Germany’s Dax off 0.7% and London’s FTSE 100 down 0.4%.

Oil Spikes as Iran Warns of a Full Week of Strikes

Global benchmark Brent crude surged 4.6% to $97.34 per barrel, while US-traded crude climbed 4.3% to $94.40 after Iran and Israel exchanged strikes for the first time since their April ceasefire. Tehran warned the attacks would continue for a full week. President Donald Trump urged Israel not to retaliate, saying a final deal with Iran was within reach and he did not want the renewed fighting to derail it. Associate Professor Jiajia Yang of James Cook University noted oil prices will remain volatile unless diplomatic efforts gain traction.

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