South Korea’s stock market was forced to halt trading for 20 minutes after the Kospi index plunged by nearly 9% within minutes of Monday’s opening.
The halt is part of a circuit breaker mechanism designed to prevent panic trading and was triggered for the third time this year after a sharp sell-off in technology stocks.
Japan’s Nikkei 225 index slid by around 4% – the most in three months – as shares of major tech companies fell.
Oil prices also rose on Monday, fuelling concerns of inflation, after Iran and Israel exchanged strikes for the first time since a ceasefire was agreed between the sides and the US in April.
Trading in South Korea has resumed since the circuit breaker was triggered, with the Kospi index down by about 5%.
The share price of major South Korean tech companies were sharply lower, including those of chipmakers Samsung and SK Hynix.
Overall, the tech-heavy Kospi has seen huge gains in recent months due to a wave of investment in the country’s tech companies.
Other Asian stock exchanges, like the Hang Seng Index and the Shanghai Composite were also down on Monday.
