South Korea’s KOSPI index leads regional declines, erasing gains from April to June amid a broader tech sector rout.
Asian markets tumbled sharply, with South Korea’s KOSPI index sinking over 12% at its lows, wiping out all gains from April to June. The selloff, driven by tech shares, mirrors the severity of the dot-com bust, raising concerns about leverage and market sentiment.
The Nikkei and TAIEX also fell, down 3% and 4% respectively, reflecting a broader negative mood across the region. European futures followed suit, with DAX and CAC 40 futures declining 0.7% and 0.6%, as the tech-driven downturn spreads globally.
US tech shares continued their decline, adding to the pressure after recent volatility, including a selloff triggered by Alphabet’s earnings. The rout highlights risks for investors betting on a one-directional market rally.