Asian markets plunged as investor panic spread across global equities, with South Korean stocks leading the regional sell-off.
South Korea’s KOSPI slumped more than 12%, after already losing over 7% the previous day. The sharp two-day drop marked the benchmark’s steepest decline since the 2008 global financial crisis. Technology heavyweights Samsung Electronics and SK Hynix — which had been central to Seoul’s market rally this year — each tumbled about 10%.
Oil prices also continued to climb, with Brent crude rising above $83 a barrel. Donald Trump said the US Navy could escort oil tankers through the Strait of Hormuz if necessary, a vital waterway through which roughly one-fifth of the world’s oil supply passes. Washington has also moved to provide insurance support for shipping in the region.
Despite these measures, tensions intensified after Israel launched further overnight strikes on Iran, while Iranian attacks on neighbouring countries raised fears that the conflict could widen further.
Elsewhere in Asia, Japan’s Nikkei 225 fell more than 4%, with semiconductor firms Advantest and Tokyo Electron each dropping over 4%.
Hong Kong’s Hang Seng Index declined 2.9% to 25,023.18, while China’s Shanghai Composite slipped 1.2% to 4,074.22. In Australia, the S&P/ASX 200 lost 1.9% to 8,901.20.
Markets across the wider region also suffered steep losses. Taiwan’s TAIEX dropped 4.4%, while stocks in Bangkok fell by around 8%.
On Wall Street, losses moderated later in the session but US equities still closed lower. The S&P 500 finished down 0.9%, slipping below its 100-day moving average for the first time since November. The Dow Jones Industrial Average declined 0.8%, while the Nasdaq Composite dropped 1%.
In currency markets the US dollar strengthened by 0.7%, while gold held relatively steady at around $5,133 an ounce.
