South Korea's Kospi index plunges over 7% amid global rout
South Korea's Kospi index plunged 7.24% on Tuesday, closing at 5,791.91 after a long weekend—its sharpest drop in months and enough to trigger a temporary halt to program and futures trading midday.
Foreign investors sold off a massive 5.4 trillion won
This sudden crash rattled one of Asia's best-performing markets this year.
Foreign investors sold off a massive 5.4 trillion won, while local buyers tried to catch the dip with 5.75 trillion won in purchases.
Other Asian markets felt the shock too, with Japan's Nikkei falling as much as 2.7% intraday before closing down 1.35%.
Ongoing Middle East conflict pushes crude prices higher
Ongoing Middle East conflict—including US-Israeli strikes on Iran and threats to close key oil routes—pushed some crude benchmarks above $80 a barrel, with Dubai crude around $80.79.
Higher energy costs are fueling inflation worries worldwide, putting extra pressure on import-heavy economies like South Korea.