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Tech-Led Selloff and IranIsrael Escalation Push Asian Markets into Sharp Rout

Higher US Treasury yields after strong jobs, Broadcom’s weak outlook, renewed IranIsrael strikes raise the risk of higher inflation as well as capital outflows for oil‑importing economies.

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)
A man walks in front of an electronic screen displaying Japan's Nikkei stock prices quotation board inside a conference hall in Tokyo, Japan, April 27, 2026. REUTERS/Issei Kato/File Photo
A screen shows the stock prices of South Korean chipmakers at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 8, 2026. (AP Photo/Ahn Young-joon)
A trio of traders work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Overview

  • The rout intensified on Monday after a Friday Nasdaq drop triggered by stronger-than-expected US jobs and disappointing Broadcom guidance sent semiconductor and AI-linked names sharply lower.
  • South Korea led losses as the Kospi plunged into double digits intraday, futures trading hit a circuit breaker, and major chipmakers such as Samsung Electronics and SK Hynix suffered heavy declines.
  • Renewed missile exchanges between Iran and Israel drove Brent crude into the mid‑$90s per barrel, lifting oil prices and adding pressure on inflation expectations for import-dependent countries.
  • Indian markets opened about 1% lower with the Sensex and Nifty erasing large market value, foreign institutional investors accelerated selling, and the rupee weakened under pressure from higher oil and capital outflows.
  • Market watchers will be watching US inflation data, Fed guidance, further Middle East developments, Broadcom and other semiconductor updates, and the flow of foreign capital to judge whether the shock stabilizes or deepens.