Kospi dream rally fumbles: World's best-performing stock plunges 7%
South Korea's Kospi index plunged 7% as regional geopolitical tensions and fears of inflation rattled global markets. The sell-off was exacerbated by a decline in major tech stocks like Samsung and SK Hynix, signaling a potential end to the recent AI-driven market rally.
Why it matters
The market crash highlights the vulnerability of global tech supply chains and investor sentiment to geopolitical instability in the Middle East.
The spectacular rally in South Korea's stock market suffered a sharp reversal on Monday, with the benchmark Kospi tumbling 7%. Rising tensions across the Middle East dragged the index 511 points down to 6,964.76 as rising geopolitical tensions in the Gulf rattled investors worldwide.The sell-off came after Iran claimed it had closed the strategically vital Strait of Hormuz, sending oil prices sharply higher and reviving fears of persistent inflation.The weakness extended across broader Asian markets, with most major indices trading in the red around 9 am IST. Japan's Nikkei fell 1.12%, while China's Shanghai Composite and Shenzhen Composite declined 1.49% and 2.53%, respectively. Singapore's Straits Times Index slipped 0.23%, while Hong Kong's Hang Seng Index was down 0.17%.
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