I am looking at the trading screens in Seoul where the Kospi dropped 3.5% this morning, dragging regional benchmarks down as Chinese equities slid into a bear market.
Asian stock markets tumbled on Thursday as technology shares sank and rising oil prices compounded investor concerns. The CSI 300 index, which tracks the 300 largest stocks traded in Shenzhen and Shanghai, slid 2%. That move brought its total decline from June’s peak to 20%. Other regional benchmarks followed the downward trend across the board.
Japan’s Nikkei 225 fell around 3%, Taiwan’s benchmark lost 2%, and Hong Kong’s Hang Seng declined 3%. Chinese technology shares traded in Hong Kong faced their worst session since President Donald Trump’s April 2025 tariff announcement, according to Bloomberg television anchor David Ingles. Ingles noted that the technology benchmark has fallen more than 40% from its peak, erasing gains made after Beijing’s September stimulus package. Mixed third-quarter earnings reports from U.S. companies added to uncertainty surrounding artificial intelligence investments. Tesla shares fell around 3% after the market closed following a cut to its capital spending forecast, while Meta Platforms raised the lower end of its spending guidance. Bitcoin retreated toward $82,000 after giving up its advance above $84,000. Gold fell more than 1% to below $4,100 an ounce, and silver dropped over 3.5% to around $55. The Cboe Volatility Index jumped 10% to around 18, sitting roughly 30% above its September low. WTI crude topped $100 a barrel and Brent crude climbed above $112 to reach its highest level since May. This equity selloff persisted despite easing U.S. Treasury yields, with the 10-year yield standing near 5.077% below its recent peak around 5.4%.
The combination of rising energy costs and compressed technology valuations leaves regional investors with fewer safe havens as volatility climbs across global exchanges.
Brent crude holds above $112 a barrel while central banks watch the broader market retreat.