Asia Markets in Meltdown: India Crashes 13%, South Korea Plunges 8% in Panic Sell-Off
Asian stock markets are in turmoil as a wave of selling sweeps across the region, with India’s main indexes crashing over 13% and South Korea suffering its worst single-day loss since 2008.
The sell-off began after a sharp decline on Wall Street last Friday, where the technology-heavy Nasdaq fell heavily [167982]. The panic quickly spread to Asia, hitting investors who had borrowed money to buy stocks. South Korea’s benchmark Kospi index plunged 8.1% on Monday, its biggest drop since the global financial crisis [167998]. Samsung Electronics fell 6.5%, while chipmaker SK Hynix dropped 8.2% [167998].
In India, the Sensex is down over 13% and the Nifty has lost more than 10%, deepening losses for everyday retail traders [168269]. The decline comes amid rising tensions in the Middle East, which have unsettled global markets [168269].
The crash has raised alarms about leveraged investing, where people borrow money to buy stocks. When prices fall quickly, these investors may be forced to sell, making the market drop even more [168007]. Experts are watching closely to see if these forced sales will create a bigger problem [168007].
Analysts said the main trigger was a stronger-than-expected US jobs report, which raised fears the Federal Reserve will keep interest rates higher for longer [167998]. That makes borrowing more expensive for companies worldwide. Investors now watch for the Fed’s next meeting in September, with many expecting the central bank to hold rates steady [167998].
Japan’s Nikkei lost 3.4%, while Hong Kong’s Hang Seng dropped 2.1%. Taiwan and Australia saw similar losses [167998]. The crash hit technology and export-heavy stocks hardest across the region [167998].