Asian markets rout as tech selloff, rate fears shake investors

Asian stock markets suffered a massive sell-off Monday as tech firms were hammered and concerns about a Federal Reserve interest rate hike intensified, with Seoul's Kospi index diving more than 8 percent to lead a rout across the region. The selling came after a stronger-than-expected US jobs report showed the economy added 272,000 positions in May, reigniting fears that the Fed may be preparing a new tightening cycle. Chipmaking giants Samsung Electronics and SK Hynix shed nearly 9 percent and 6 percent respectively, while markets in Tokyo, Taiwan, Hong Kong and Shanghai all recorded steep declines. The sell-off was triggered by a combination of factors that rattled investor confidence, including below-forecast revenue guidance from US chipmaker Broadcom that sparked worries about extended valuations in the AI sector. The technology sector had experienced a breathtaking surge in recent months powered by a race into artificial intelligence-linked stocks, and the latest concerns caused investors to cash out heavily. The $1.8 trillion was wiped from S&P 500 market capitalization Friday, marking the worst single-day drop since October, with the Nasdaq falling more than 4 percent and the VanEck Semiconductor ETF losing over 9 percent. Compounding market anxieties, Israel launched airstrikes targeting central and western Iran on Monday in response to Iranian missile fire, with explosions reported in Tehran, Tabriz and Isfahan. The attacks, which came just days after the first Iranian missile barrage since an April ceasefire, sent oil prices surging more than 3 percent, with Brent crude jumping to $96.59 per barrel. The escalation further strained ongoing ceasefire negotiations between the US and Iran, adding to already elevated concerns about the broader geopolitical situation while investors grappled with the dual pressure of tightening monetary policy and Middle East instability.