Geopolitical Tensions Shake Asian Markets: Kospi Plunges 9%, Semiconductor Sector Hit Hard

Rising geopolitical risks, fueled by U.S. military strikes on Iran and the Hormuz Strait crisis, triggered sharp sell-offs across Asian stock markets at the start of the week. CENTCOM confirmed initiating a third wave of attacks on Iran, escalating regional tensions and amplifying risk aversion. The semiconductor sector bore the brunt of the downturn, with SK Hynix shares slumping over 12% and South Korea's KOSPI index closing down 9% at 6,807. Despite Samsung Electronics' announcement to accelerate its Yongin chip plant launch to 2029 amid AI-driven demand, its shares opened the week with significant declines.

Geopolitical Risks Spill Over Into Global Markets

■U.S. Central Command (CENTCOM) launched decisive strikes on a commercial vessel in the Hormuz Strait.

■Iran retaliated by increasing attacks on Gulf states, heightening regional instability.

■Typhoon Bavi impacted eastern China, affecting over 2.4 million people and canceling 2,800+ flights.

■The typhoon followed devastating floods from Typhoon Mayask, which claimed 39 lives in the region.

Semiconductor Sector Faces New Headwinds

■Samsung Electronics aims to advance its Yongin chip facility to 2029 to meet AI memory demand.

■However, geopolitical uncertainty overshadowed optimistic signals, driving risk-off sentiment.

■SK Hynix and peers faced steep losses amid heightened sector volatility.

Caner Yılmaz's Note: Geopolitical risks are increasingly overriding technical indicators like Ichimoku clouds or Fibonacci retracements in shaping market trajectories. The KOSPI's 9% drop signals a breach below the 100-day moving average, while semiconductor downturns reflect supply chain vulnerabilities. Algorithmic trading models must recalibrate for such high-volatility scenarios.