US-Iran Talks Stalled, Most Asian Stocks Fall
Stalled negotiations between the US and Iran, coupled with calls for a social tax on AI profits in South Korea, led to declines in Asian stock markets. South Korea's KOSPI index, in particular, saw a significant drop after a surge in profits from AI chip companies.
📋 Article Processing Timeline
- 📰 Published: May 12, 2026 at 18:43
- 🔍 Collected: May 12, 2026 at 19:02 (18 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 07:14 (12h 11m after Collected)
HONG KONG (CNA) -- Negotiations between the United States and Iran have stalled, sending international oil prices higher. Meanwhile, calls for a social tax on artificial intelligence (AI) profits in South Korea dragged down the technology-heavy Korea Composite Stock Price Index (KOSPI) significantly.
According to AFP, South Korean senior officials have suggested promoting a "national dividend" policy to redistribute excessive profits generated by AI for companies. Seoul's stock market plummeted 5% in response. The KOSPI index had repeatedly hit new highs in recent weeks, driven by surging profits from tech giants like Samsung Electronics and SK Hynix amidst the AI chip boom.
In Indonesia, Southeast Asia's largest economy, the Jakarta stock market fell 2% due to the Indonesian rupiah hitting a new low against the US dollar.
Market optimism for a US proposal to de-escalate conflicts was quickly shattered after President Trump told reporters yesterday that Tehran's response was "garbage."
Trump is set to become the first sitting US president to visit China since 2017 this week. Issues such as Taiwan, tariffs, rare earths, and the war in Iran are expected to be key topics in bilateral talks. Business leaders including Tesla CEO Elon Musk and Apple CEO Tim Cook will also accompany Trump to support US-China trade relations.
Iranian officials will closely monitor Trump's visit, expecting him to pressure Xi Jinping, a major buyer of Iranian oil. Analysts noted that as the conflict approaches its third month, the market remains in a wait-and-see mode.
Analyst Rodrigo Catril told the NAB Morning Call Podcast, "I think the market tone right now is that while Trump is dissatisfied with the existing options, he is not suggesting further escalation of the situation."
Japan's benchmark Nikkei index closed up 0.5% today at 62742.57 points. Hong Kong's Hang Seng index closed down 0.2% at 26347.91 points. The Shanghai Composite Index closed down 0.3% at 4214.49 points.
As for other Asian stock markets, Taipei and Kuala Lumpur markets closed higher. Seoul, Sydney, Singapore, Jakarta, Wellington, and Manila markets closed lower. (Translator: Ho Hung-Ju) 1150512
Choose to stand with facts, your every sponsorship is the power to protect press freedom.
Download the CNA "First-hand News" APP to stay updated with the latest news.
Reproduction, public broadcasting, public transmission, or use of the text, images, and audio/video on this website is prohibited without authorization.
According to AFP, South Korean senior officials have suggested promoting a "national dividend" policy to redistribute excessive profits generated by AI for companies. Seoul's stock market plummeted 5% in response. The KOSPI index had repeatedly hit new highs in recent weeks, driven by surging profits from tech giants like Samsung Electronics and SK Hynix amidst the AI chip boom.
In Indonesia, Southeast Asia's largest economy, the Jakarta stock market fell 2% due to the Indonesian rupiah hitting a new low against the US dollar.
Market optimism for a US proposal to de-escalate conflicts was quickly shattered after President Trump told reporters yesterday that Tehran's response was "garbage."
Trump is set to become the first sitting US president to visit China since 2017 this week. Issues such as Taiwan, tariffs, rare earths, and the war in Iran are expected to be key topics in bilateral talks. Business leaders including Tesla CEO Elon Musk and Apple CEO Tim Cook will also accompany Trump to support US-China trade relations.
Iranian officials will closely monitor Trump's visit, expecting him to pressure Xi Jinping, a major buyer of Iranian oil. Analysts noted that as the conflict approaches its third month, the market remains in a wait-and-see mode.
Analyst Rodrigo Catril told the NAB Morning Call Podcast, "I think the market tone right now is that while Trump is dissatisfied with the existing options, he is not suggesting further escalation of the situation."
Japan's benchmark Nikkei index closed up 0.5% today at 62742.57 points. Hong Kong's Hang Seng index closed down 0.2% at 26347.91 points. The Shanghai Composite Index closed down 0.3% at 4214.49 points.
As for other Asian stock markets, Taipei and Kuala Lumpur markets closed higher. Seoul, Sydney, Singapore, Jakarta, Wellington, and Manila markets closed lower. (Translator: Ho Hung-Ju) 1150512
Choose to stand with facts, your every sponsorship is the power to protect press freedom.
Download the CNA "First-hand News" APP to stay updated with the latest news.
Reproduction, public broadcasting, public transmission, or use of the text, images, and audio/video on this website is prohibited without authorization.