Kospi Crashes Amid Tech Selloff as Global Markets Remain Volatile
The global market saw mixed results on Thursday, with European and Asian shares trading in different directions. The South Korean Kospi took the biggest hit, plummeting 4.6% to 6,296.38. This decline was largely attributed to the tech sector, as memory chipmaker SK Hynix fell 10.4%, while its larger rival Samsung Electronics lost 6.3%. Stephen Innes of SPI Asset Management attributed this selloff to 'profit-taking and risk reduction' ahead of Friday's nonfarm payroll report.
Despite this decline in the tech sector, other Asian benchmarks were relatively stable. The Hang Seng index in Hong Kong dropped 1.5% to 25,530.28, while the Shanghai Composite index climbed 0.6% to 3,900.35. Japan's Nikkei 225 lost 0.9% to 65,683.26.
The oil market remained steady, with Brent crude trading near $79 a barrel. Uncertainty surrounding the U.S.-Iran conflict continues to impact global markets, despite hopes for a reopening of the Strait of Hormuz. U.S. President Donald Trump announced that a deal is coming soon, but this has been met with skepticism.
On Wall Street, tech giants including Alphabet and Microsoft saw declines. However, overall market sentiment remains positive, as companies continue to report strong corporate profits and growth expectations.