Asian markets tumbled on Monday, 8 June as investors rushed to book profits in technology stocks, triggering a sharp pullback in the artificial intelligence-driven rally that had powered global equities to record highs.
South Korea’s KOSPI, heavily weighted toward semiconductor and technology companies, plunged more than 6.8% in volatile trading, prompting a temporary 20-minute trading halt. The index has now fallen about 14% from last week’s record peak.
Japan’s Nikkei 225 also came under pressure, dropping 3.4% in early trade. Meanwhile, US stock futures attempted a modest recovery after a steep selloff on Wall Street at the end of last week.
Investor sentiment was further rattled by renewed geopolitical tensions after Israeli strikes on Beirut pushed oil prices and the U.S. dollar higher, adding to concerns over inflation and global economic growth.
The weakness followed Friday’s sharp decline in US markets, where the Nasdaq Composite slumped 4.2% after stronger-than-expected jobs data reinforced expectations that the Federal Reserve may keep interest rates elevated or consider further tightening, weighing heavily on high-growth technology stocks.