South Korea’s Kospi triggered its second circuit breaker in four sessions on Monday, sparking a broader regional sell-off as oil prices neared $120 a barrel for the first time since 2022.
The index fell more than 8%, prompting a 20-minute trading halt from 10:31 a.m. local time. The index last fell by 8.58%.
Heavyweight Samsung Electronics fell more than 10%, while chip maker SK Hynix lost 12.3%.
The circuit breaker was tripped last week when the benchmark fell more than 12% on Wednesday, posting its worst one-day decline.
Brent futures rose 26.1% to $116.08, while U.S. West Texas Intermediate crude futures jumped 27.6% to $116.03. The jump in oil prices is the biggest one-day gain since late 1988, according to LSEG data.
The sharp rise comes after major Middle Eastern oil producers, including Kuwait, Iran and the United Arab Emirates, cut oil production following the closure of the Strait of Hormuz.
Japan’s Nikkei 225 fell 7.05%, falling below the 52,000 mark for the first time since January, while the Topix fell 5.36%.
Softbank Group Corp was among the biggest losers on the index, falling more than 11%, while chip-related stocks such as Advantest and Lasertec also fell by more than 13% and 11% respectively.
Chinese markets recorded smaller losses, with the Hong Kong Hang Seng index down 2.75% and the CSI 300 in mainland China down 1.65%, SEEbiz reports.
Australia’s S&P/ASX 200 fell 3.2%, paring earlier losses.
US President Donald Trump, however, announced on Truth Social that a rise in “short-term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
“Only fools would think otherwise!” Trump added.
Sharp sell-off due to surge in oil prices
South Korea’s Kospi triggered its second circuit breaker in four sessions on Monday, sparking a broader regional sell-off as oil prices neared $120 a barrel for the first time since 2022.
The index fell more than 8%, prompting a 20-minute trading halt from 10:31 a.m. local time. The index last fell by 8.58%.
Heavyweight Samsung Electronics fell more than 10%, while chip maker SK Hynix lost 12.3%.
The circuit breaker was tripped last week when the benchmark fell more than 12% on Wednesday, posting its worst one-day decline.
Brent futures rose 26.1% to $116.08, while U.S. West Texas Intermediate crude futures jumped 27.6% to $116.03. The jump in oil prices is the biggest one-day gain since late 1988, according to LSEG data.
The sharp rise comes after major Middle Eastern oil producers, including Kuwait, Iran and the United Arab Emirates, cut oil production following the closure of the Strait of Hormuz.
Japan’s Nikkei 225 fell 7.05%, falling below the 52,000 mark for the first time since January, while the Topix fell 5.36%.
Softbank Group Corp was among the biggest losers on the index, falling more than 11%, while chip-related stocks such as Advantest and Lasertec also fell by more than 13% and 11% respectively.
Chinese markets recorded smaller losses, with the Hong Kong Hang Seng index down 2.75% and the CSI 300 in mainland China down 1.65%, SEEbiz reports.
Australia’s S&P/ASX 200 fell 3.2%, paring earlier losses.
US President Donald Trump, however, announced on Truth Social that a rise in “short-term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
“Only fools would think otherwise!” Trump added.
