Asian markets dropped significantly on June 8, with South Korea's KOSPI falling over 6.8% and Japan's Nikkei slipping more than 3%. The sell-off followed a retreat in technology stocks that had driven a recent artificial intelligence rally. Rising crude oil prices and escalating US-Iran tensions added to market pressures, triggering widespread profit-taking across the region, according to livemint.com.
The decline unfolded as investors booked profits in tech shares after global equities reached record highs fueled by AI-related gains. The KOSPI, which has a heavy semiconductor weighting, was particularly affected, tumbling 8% amid concerns over inflation and geopolitical risks. The sell-off also reflected fears of further interest rate hikes, which dampened investor appetite for growth stocks, thehindubusinessline.com reported.
This market correction highlights the vulnerability of the recent AI-driven rally to external shocks such as geopolitical conflicts and commodity price surges. The sharp drop in major Asian indices underscores the sensitivity of tech-heavy markets to shifts in global risk sentiment. The sell-off follows similar declines in US markets, indicating a synchronized global response to rising uncertainties and inflationary pressures, per livemint.com.
On June 8, the Sensex closed at 74,243.34, down 116.67 points, while the Nifty ended at 23,366.70, down 49.85 points, reflecting the broader impact on Indian equities. Crude oil prices surged to 8,608.00, up 234.00 points, further contributing to market volatility, according to thehindubusinessline.com.