- The South Korean benchmark KOSPI index experienced a significant pullback, dropping over 5% in a single day due to a sharp decline in chip heavyweight stocks. Major tech giants like SK Hynix (000660:KS) and Samsung Electronics (005930:KS) faced notable capital outflows.
- The rapid escalation of geopolitical tensions in the Middle East led to a more than 3% surge in Brent crude oil futures prices in a single day, reigniting global market concerns about rising energy costs driving core inflation.
- Risk aversion sentiment suppressed the performance of risk assets, with overseas equity derivatives like Nasdaq 100 index futures collectively under pressure. The market is focusing on the upcoming U.S. Consumer Price Index (CPI) release to assess the Federal Reserve's policy path.
Tech Weights Pressure Benchmark Index
Driven by a dual transmission of global chip sector valuation reassessment and heightened risk aversion sentiment, the South Korean KOSPI index faced intense sell-offs. Heavyweight stocks SK Hynix and Samsung Electronics saw daily declines of 11% and 7%, respectively. As tech stocks, which were the core driving force behind the previous rise in Asian markets, face increased macroeconomic uncertainty, they have become the primary targets for institutional portfolio adjustments and risk exposure reductions, leading to a deep decline in the benchmark index.
Strait of Hormuz Situation Boosts Inflation Expectations
Iran's announcement of closing the Strait of Hormuz and expanding drone attacks led to a more than 3% surge in Brent crude oil futures prices. Although U.S. officials questioned the actual extent of the waterway blockade, geopolitical premiums have quickly been injected into energy assets. The market is concerned that rising energy costs due to supply chain disruptions will directly increase global imported inflation pressure, eroding corporate profit margins.
Most Major Asian Equity Markets Close Lower
Apart from South Korea's leading decline, Japan's Nikkei 225 index and China's Shanghai Composite index fell by 1.3% and 0.7%, respectively, reflecting a general decline in risk appetite across the Asia-Pacific region. The Australian S&P/ASX200 index and Hong Kong's Hang Seng index showed relative resilience, with defensive allocations across different markets leading to sector performance divergence, as risk aversion sentiment continued to spread during Asian trading hours.
Awaiting Revaluation of Macro Data and Earnings Reports
The market is closely watching the upcoming U.S. CPI inflation data, which is directly related to whether the Federal Reserve will maintain high borrowing costs for a longer period. Meanwhile, the second-quarter earnings season, led by TSMC (2330:TW) and major U.S. banks, is about to begin. The realization of fundamentals will be a key variable in determining whether high-valuation sectors like artificial intelligence can gain support.
