Asian stocks tumble as South Korea drops more than 3% and Japan’s Nikkei loses nearly 2,000 points

Asian markets took a sharp turn lower on Wednesday. South Korea’s benchmark index plunged more than 3%, while Japan’s Nikkei fell nearly 2,000 points and briefly tested the 64,000 level.

South Korea opened down 210.34 points, or 3.07%, at 6,625.47. The index later slipped to 6,616.97, a loss of 3.2%, as selling intensified. SK Hynix and Samsung Electronics both opened more than 3% lower.

Japan’s Nikkei started 1,020 points lower, or 1.54%, at 65,195. It continued to fall, reaching 64,234 after losing 1,981 points. Buying then emerged, leaving the index at 64,473 in morning trading, down 1,742 points.

The sell-off followed a broad decline on Wall Street. The Dow Jones Industrial Average fell 419.02 points, or 0.79%, while the S&P 500 lost 0.71% and the Nasdaq dropped 1.03%. The Philadelphia Semiconductor Index fell 2.14%, and Taiwan Semiconductor Manufacturing Co.’s U.S.-listed shares declined 0.32% to close at $414.

Renewed conflict in the Middle East revived concerns that inflation and higher oil prices could influence the Federal Reserve’s policy decisions. Those concerns added pressure to markets already weakened by the previous day’s losses in U.S. equities.