TLDR
- KOSPI fell 8.29% to 7,484.41 after triggering a 20-minute circuit breaker halt in Seoul trading.
- Nikkei 225 dropped 3.85% to 64,024.60 as Japan faced pressure from rising bond yields.
- Samsung Electronics lost 5%, while SK Hynix declined 2% during the semiconductor-led market selloff Monday.
- Bitcoin briefly fell to $59,227 before recovering near $61,000 as risk assets remained weak globally.
- Strong US payrolls data raised rate expectations after 172,000 jobs beat the forecast of 85,000.
Asian equity markets opened the week under heavy selling pressure on Monday, June 8, as investors moved away from risk assets after a sharp decline on Wall Street, renewed West Asia tensions and stronger-than-expected US jobs data. The selloff hit technology-heavy markets hardest, with South Korea’s KOSPI and Japan’s Nikkei 225 leading losses across the region.
South Korea’s KOSPI closed down 676.18 points, or 8.29%, at 7,484.41. The move marked its largest one-day decline since March 4 and came after the index fell as much as 8.8% during the session. Trading was halted for 20 minutes after a Level 1 circuit breaker was triggered, reflecting the speed of the decline.
Macro Pressure Drives Broad Asian Selling
Japan’s Nikkei 225 dropped 2,563.52 points, or 3.85%, to close at 64,024.60. Taiwan’s TAIEX fell about 3.6%, while Australia’s S&P/ASX 200 lost nearly 1%. India’s Sensex and Nifty also traded close to 1% lower, showing that the pressure spread beyond North Asia’s chip-heavy markets.
The selling followed a steep decline in US technology shares on Friday, when the Nasdaq 100 fell about 5%, its worst single-day performance since April 2025. The retreat came after Broadcom issued a weaker-than-expected outlook for AI chip demand, raising concern over the strength of the artificial intelligence investment cycle.
South Korea was especially exposed to the shift because semiconductor shares had been central to its 2026 market gains. Samsung Electronics fell 5%, while SK Hynix declined 2%, adding pressure to the KOSPI. Both companies had benefited from demand linked to AI infrastructure spending.
Rate Fears Rise After US Jobs Data
The stronger US May payrolls report added to selling pressure. Employers added 172,000 jobs, above forecasts of 85,000. The data increased market expectations that the Federal Reserve could raise interest rates by December 2026.
US two-year Treasury yields rose 12 basis points to 4.16%, while the dollar strengthened. Higher yields tend to weigh on growth stocks because they raise the discount rate applied to future earnings. Technology and semiconductor shares were among the most exposed to that repricing.
Japan faced an added domestic pressure as 30-year government bond yields recently reached record highs. The move added to concerns about financing costs and placed more strain on Japanese exporters already exposed to weaker global risk appetite.
The pressure was not limited to equities. Crypto markets also weakened over the weekend, with Bitcoin briefly falling to $59,227 before recovering to around $61,000. The move placed attention on the $60,000 level, which traders have viewed as an important support area before a possible move toward $45,000.
Geopolitical Tension Adds To Market Stress
Renewed conflict between Iran and Israel also weighed on sentiment. Iran fired missiles at Israel after fresh strikes in Beirut were attributed to Israel. Iran also closed its airspace in anticipation of a response, reducing hopes that the April ceasefire would hold.
The escalation added pressure to crude prices, raising concern that energy costs could rise while interest rate expectations remain elevated. Higher oil prices can add to inflation concerns and make central bank policy decisions more difficult.
The Asian market selloff came ahead of two closely watched US events: the June 11 consumer price index reading and the June 17 Federal Open Market Committee meeting. Traders are expected to watch both events for signs of whether inflation and labor market strength could keep US rates higher.
With the KOSPI down 8.29%, the Nikkei off 3.85% and Bitcoin still near a key support zone, Monday’s Asian session showed a wider move away from risk assets. Technology shares, crypto markets and rate-sensitive equities remained under pressure as investors reassessed global growth, inflation and policy risks.
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