Asian Stocks Fall on Wall Street Weakness; South Korea's KOSPI Triggers Circuit Breaker

(Central News Agency, Hong Kong, 8th, Comprehensive Foreign Report) Strong U.S. non-farm payroll data reinforced market expectations of a Federal Reserve (Fed) interest rate hike. U.S. tech stocks plunged on the 5th, dragging down major indices. Asian stocks followed Wall Street's weakness on Monday, closing mostly lower. South Korea's benchmark KOSPI index plunged over 8% at the open, briefly triggering a circuit breaker.

According to AFP, reports of renewed clashes between Iran and Israel earlier on Monday raised fears of an escalation in the Middle East crisis, dampening market sentiment and pushing international oil prices higher.

The recent surge in tech stocks, fueled by the artificial intelligence (AI) boom, triggered a wave of profit-taking.

The U.S. reported that May non-farm payroll additions were more than double market estimates, and the final figures for the previous two months were also revised upward. Analysts believe this shows the U.S. economy remains resilient in the face of high prices, while also strengthening expectations for a Fed rate hike.

As investors anticipate higher U.S. interest rates, U.S. Treasury yields, which move inversely to prices, rose, and the dollar strengthened against major currencies.

Major U.S. stock indices all closed in the red on the 5th, with the Nasdaq Composite falling over 4%. Asian stocks followed Wall Street's weakness on Monday, with markets heavily weighted toward tech stocks suffering the most.

Stock markets in Tokyo, Hong Kong, Shanghai, Taipei, Seoul, Sydney, Wellington, and Manila all closed lower. South Korea's KOSPI composite index plunged 8.3% at the open, briefly triggering a circuit breaker. Benchmark companies Samsung Electronics and SK Hynix fell 10% and 7.7%, respectively.

Stephen Innes, a strategist at SPI Asset Management, said, "The better-than-expected labor market data has once again raised fears that the Fed may be preparing to embark on a new rate hike cycle."

He added, "Confidence in the progress of Middle East peace talks continues to decline, keeping energy markets on edge. Disappointing earnings guidance from several major tech companies has also interrupted the market's recent trend, which was almost entirely driven by AI-related trading." (Editor: Hong Qiyuan) 1150608