South Korea’s Kospi experienced its most significant decline in 19 months, primarily impacted by substantial losses in major players Samsung Electronics and SK Hynix, which dropped nearly 10% and 12%, respectively, on Tuesday following the resumption of trading after a public holiday. The index experienced a decline of 7.24%, closing at 5,791.91. Samsung shares experienced a significant decline following the disclosure that the commencement of mass production at the company’s U.S. facility in Taylor, Texas, has been deferred to 2027 from the initially planned timeline of this year. The nation’s defence stocks experienced a notable increase, with certain entities climbing by more than 20%.
Other Asia-Pacific markets experienced declines as the conflict in Iran persists into its fourth day, negatively impacting risk sentiment. Oil prices continued to rise following reports that Iran has closed the Strait of Hormuz. U.S. crude futures increased by 2.16%, reaching $72.78 per barrel, while Brent crude rose by 2.78%, trading at $79.91 per barrel as of 2:38 am. Additional More than 14 million barrels per day transited via the Strait on average last year, representing nearly a third of the global seaborne crude exports, as reported.
Japan’s Nikkei 225 experienced a decline of 3.06%, influenced by consumer cyclicals, settling at 56,279.1, while the Topix fell by 3.24% to 3,772.17. In the final hour of trading, Hong Kong’s Hang Seng index experienced a decline of 1.25%, whereas mainland China’s CSI 300 saw a decrease of 1.54%, closing at 4,655.9. Australia’s S&P/ASX 200 experienced a decline of 1.34%, concluding at 9,077.3, following its status as one of the few markets on Monday to achieve a slight increase.
Overnight in the U.S., the S&P 500 experienced a modest increase of 0.04% following a late-session rebound. The Nasdaq Composite increased by 0.36%, recovering from a previous decline of 1.6%. The Dow Jones Industrial Average decreased by 73.14 points, representing a decline of 0.15%, and concluded at 48,904.78. At its nadir, the Dow experienced a decline of nearly 600 points.