Market Turmoil
Asian Stocks Plunge Sharply Amid Tech Worries and Middle East Tensions, Oil Prices Rise
Asian stock markets slumped sharply on Monday, extending a painful Friday selloff led by Wall Street tech losses, as investors reassessed interest-rate expectations after strong U.S. jobs data. Concerns about whether AI-driven gains are overheating and worries about upcoming mega-listings and tech earnings weighed on sentiment, with analysts pointing to weaker chip results and valuation risk. The downturn was reinforced by renewed Middle East tensions, including strikes involving Iran and Israel, which pushed oil higher and revived fears about a broader escalation. In markets beyond equities, bond moves and rising energy prices mirrored the risk-off mood, while U.S. stock-index futures swung and cryptocurrency prices ticked up modestly. India’s Sensex and Nifty also fell in early trade, tracking global equities lower and crude prices higher. The situation was further complicated by reports that the U.S. President urged Israel not to retaliate, underscoring uncertainty over how peace efforts will hold.
Key Points
In South Korea, the KOSPI plunged to nearly 9% at one point and the market was briefly halted, underscoring how sharply the selloff hit even during early trading (KOSPI “fell by amost 9%… forcing trading to be briefly suspended”).
Investors’ concerns about tech earnings extended beyond AI hype: Reuters cited an analyst saying doubts had “crept in… partly following weaker-than-expected numbers from US chipmaker Broadcom.”
Oil price strength persisted even with supply assurances: Brent was up around 3% and “once again heading towards the $100 per barrel mark,” despite “weekend action by the OPEC+ oil exporters’ group… with a further boost to output.”
The looming market impact of mega-listings was detailed with specifics: the SpaceX share sale was expected to start trading on Friday with an initial valuation around “$1.75 trillion,” and some brokers warned the size of the move could weigh on other assets—on top of other potential big listings.
Middle East escalation details added nuance to the risk-off mood: one report said this was the “first Iranian attack against Israel since the cease-fire agreement took effect in early April,” adding that “most of the Iranian missiles were intercepted” and there were “no reported injuries,” while markets also watched for complications to negotiations around the Strait of Hormuz as oil neared the low-$90s.
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