Asian Stock Markets Decline Amid Technology Sector Sell-Off and Rising Oil Prices

Asian Equities Drop for Third Day Amid Tech Selloff and US Jobs Report

Asian equities continued their downward trend for a third consecutive day, as a robust US jobs report fueled expectations for an interest-rate hike by the Federal Reserve. The Kospi Index in South Korea, the world's best-performing gauge this year, slumped over 8%, prompting a trading halt. The index's decline was led by tech shares, with Samsung Electronics Co. and SK Hynix Inc. among the biggest losers.

The MSCI's Asian equity gauge fell 1.6%, with Japanese stocks declining more than 2%. Sentiment stabilized somewhat as Nasdaq 100 futures erased earlier losses and rose 0.3%, following the underlying index's worst decline since April 2025 on Friday.

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The global slide in stocks is the biggest setback in months for the latest leg of the bull market, which began at the end of March when negotiations began in earnest to end the war in Iran. Amid concerns about inflation and elevated oil prices, investors have begun to question the sustainability of AI-driven gains, raising doubts about whether the rally has run too far, too fast.

Oil prices climbed after Iran fired missiles at Israel, with Brent crude rising 2.6% to $95.60 a barrel. The gains moderated after reports cited President Donald Trump as saying the attacks won't have an impact on efforts to reach a peace deal. The dollar, the haven of choice since the Middle East conflict began, gained against all of its Group-of-10 peers.

The jobs report added to bets the Fed's next rate move will be a hike, causing Treasuries to fall. The government in South Korea laid out a series of measures to curb pressure on the won, which slid to its weakest level since 2009.