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Japan, South Korea stocks plunge as oil prices top $100 amid escalating US-Iran war
Japan's benchmark Nikkei 225 index plunged more than 6% early Monday, as South Korea's Kospi plunged as much as 7.4%.
Asian markets tanked Monday after oil prices soared to more than $100 for a barrel, amid the ongoing conflict in West Asia.
Japan's benchmark Nikkei 225 index plunged more than 7% early Monday, as South Korea's Kospi plunged as much as 8%, after sinking by 11% last week.
This comes amid disruptions in oil production and movement, even as some facilities in West Asia halted production over threats or were targeted in attacks. Further, Iran has strategically blocked the Strait of Hormuz chokepoint, which serves as the passage for roughly one-third of the world's oil trade, thus sending prices soaring.
Also Read | Global markets tumble as oil surges amid escalating US-Israel-Iran war
Japan stocks drop most since April last year
The blue-chip Nikkei 225 lost as much as 6.9% in morning trading, which is the most since April last year during the tariff rout. The broader Topix also tanked as much as 5.7%, also the most since April.
Japanese equities had seen a strong start in 2026, with the Nikkei outpacing major global indexes owing to Japanese Prime Minister Sanae Takaichi’s expansionary fiscal policies, Bloomberg reported.
However, Japan relies on Middle Eastern oil imports, with the country getting 90 per cent of its oil from the region. It therefore is “among the most affected countries globally”, Hiroshi Matsumoto, a senior client portfolio manager at Pictet Asset Management Japan Ltd, told Bloomberg.
Also Read | Sensex slumps 1,900 points, Nifty 50 below 24,000 as oil boils amid Iran war
South Korean stocks plunge to activate circuit-breakers
South Korean shares slumped 8 per cent Monday to activate circuit breakers for a second time this month amid the escalation in conflict in Middle East. The won dropped more than 1% to trade near a key psychological barrier of 1,500 per dollar, Reuters news agency reported.
The benchmark Kospi was down 452.80 points by 8.11 per cent, at 5,132.07 by 0148 GMT. The Kospi had lost 10.6% last week, which was the biggest drop since March, 2020, at the start of the pandemic. Circuit breakers were activated for the second time, after they were triggered on Wednesday last week, for the first time since August 2024.
