Overview
- Markets turned sharply risk‑off on Monday when renewed missile exchanges between Iran and Israel coincided with heavy selling in technology names, sending Asian indices deeply lower and U.S. futures down.
- Brent crude climbed toward the mid‑$90s per barrel, driven by the Middle East escalation, which raises near‑term inflation risks for oil‑importing economies and puts pressure on currencies.
- The selloff followed a cascade of macro and company shocks, notably Broadcom’s weak outlook and stronger‑than‑expected U.S. jobs data, which together increased expectations that the Federal Reserve will keep rates higher for longer.
- South Korea’s KOSPI plunged more than 8% and activated a 20‑minute circuit breaker as major chipmakers such as Samsung and SK Hynix fell heavily, while financial volatility and foreign‑led selling spilled into other Asian and emerging markets.
- Indian markets closed at two‑month lows with Sensex and Nifty down about 1%, foreign institutional investors continuing large net sales, and the Reserve Bank of India’s unchanged repo rate plus measures to attract overseas capital offering only uncertain near‑term relief.