Asian stocks crash: Nikkei down over 1100 points, Korean stocks plunge over 4%

Asian stock markets experienced a dramatic sell-off Tuesday, with Japan's Nikkei 225 index plummeting over 1100 points and South Korea's KOSPI index sharply declining by more than 4%. This broad market downturn followed a day of mixed results on Wall Street, where investor sentiment was weighed down by persistent tensions between the United States and Iran and a subsequent rise in oil prices.

Wall Street's performance on Monday showed a divided market. The Dow Jones Industrial Average fell 0.51%, and the Nasdaq Composite dropped 0.32%. However, the Philadelphia Semiconductor Index bucked the trend, rising 1.64% on strength in memory and AI hardware stocks. This divergence set a cautious tone for Asian markets.

Initially, the South Korean KOSPI showed resilience, opening higher and surging over 3.4% in early trading, boosted by strong performances from SK Hynix and Samsung Electronics. However, as the broader Asian markets began to slide, the KOSPI reversed course dramatically. Samsung Electronics turned negative, and SK Hynix saw its gains diminish, leading the index to fall sharply from its highs, ultimately closing down 1.19% and marking a significant drop from its peak.

Japan's Nikkei 225 also opened lower and continued its downward trajectory throughout the morning session, falling over 1100 points. The decline was attributed to weakness in technology stocks, including Murata Manufacturing, Kioxia, and Mitsui Kinzoku, as investors grappled with geopolitical uncertainties and their potential impact on global markets.