Asian Tech Stocks Retreat as Middle East Tensions Rise
Asian markets fell on Monday as investors pulled back from the recent AI rally following a strong U.S. jobs report that shifted interest rate expectations. South Korea's KOSPI dropped over 6.8 percent while oil prices rose to 95.45 dollars after Israeli strikes on Beirut prompted a response from Iran.
South Korea and Japan equities fell as much as 6.8% Monday morning as investors exited high-growth technology positions. The KOSPI benchmark has dropped 14% from its record high reached last week following a 4.2% Friday decline in the Nasdaq 100. A shift toward higher interest rate expectations is forcing a reassessment of AI valuations and global liquidity levels.
South Korea’s chip-heavy index fell 6.8% in volatile morning trade, triggering a 20-minute trading halt. Japan’s Nikkei 225 index declined 3.4% during the same period. This selloff followed a sharp Friday decline in the United States after a strong labor report increased expectations for Federal Reserve rate hikes.
