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[BUSINESS] · South Korea, Japan, China, Hong Kong SAR China, United States · 3 sources

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Asian markets tumble amid chip sell-off and geopolitical tensions

Asian stock markets experienced significant declines on Wednesday, driven by geopolitical tensions and a sharp sell-off in the semiconductor sector. The South Korean Kospi saw the most substantial drop, falling between 5.3% and 5.52%, heavily impacted by losses in major chipmakers Samsung Electronics and SK hynix, which fell 7.5% and 9.1% respectively.

In Japan, the Nikkei 225 declined by 3.17%. Other regional markets also faced downward pressure, with the Shanghai Composite dropping 2.14%, while the Hang Seng in Hong Kong remained relatively stable with a minor 0.05% decrease.

The market volatility is linked to several geopolitical factors. South Korea's decision to partially reduce joint military exercises with the United States has introduced uncertainty. Simultaneously, Donald Trump has indicated interest in renewing diplomatic discussions with Kim Jong-un regarding North Korea's nuclear program.

Further instability is attributed to escalating tensions in the Middle East. Following the expiration of a 60-day ceasefire between the U.S. and Iran, Brent crude oil prices rose to approximately 92 USD per barrel. Reports from the UAE Ministry of Defense noted that Iran fired two ballistic missiles toward the Strait of Hormuz, though they reportedly landed in the sea.

Entities

Donald Trump · Kim Jong-un · Nikkei 225 · SK Hynix · Samsung Electronics

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