Global stock markets declined on Monday as investors grew increasingly concerned about the outlook for technology stocks, while oil prices surged following renewed tensions in the Middle East that weakened expectations of a near-term reopening of the Strait of Hormuz.
Equity markets across Asia and Europe tracked losses on Wall Street, where major technology stocks sold off sharply late last week amid concerns over how companies leading the artificial intelligence race would finance their massive investment programmes.
At the same time, Brent crude, the global oil benchmark, climbed nearly 5 per cent to $97.60 per barrel after Iran and Israel exchanged attacks in the wake of an Israeli strike on Beirut, heightening fears of further disruptions to regional stability and energy supplies.
Stock markets across Asia and Europe recorded significant losses on Monday as investors reacted to growing concerns over the technology sector and rising geopolitical tensions.
In Asia, where economies are heavily reliant on imported oil, markets came under intense pressure. South Korea’s Kospi index plunged nearly 9 per cent at one stage, triggering a temporary trading halt.The decline was driven largely by major chipmakers, with Samsung Electronics falling 9 per cent and SK Hynix shedding 6 per cent.
Japan’s Nikkei 225 closed down 3 per cent, while Hong Kong’s Hang Seng index lost 1.5 per cent.
European markets also opened lower.
In London, the FTSE 100 slipped 0.4 per cent, weighed down by losses in companies such as Rolls-Royce and British Airways owner IAG. In contrast, oil giants BP and Shell gained as crude prices advanced.
Major indices in Germany, France and Spain also traded lower, while US stock futures pointed to a weaker opening later in the day.
Technology-related stocks in Europe were among the hardest hit, reflecting concerns about the sustainability of the artificial intelligence-driven rally.
Semiconductor equipment maker Besi (BE Semiconductor Industries) dropped 4.5 per cent, while chipmaking equipment supplier ASML fell 3.2 per cent.
Both were among the biggest decliners on the pan-European Stoxx 600 index, which was down nearly 0.9 per cent.
