Record selloff in Seoul leads stock rout as markets brace for energy shock - Reuters

<a href="https://news.google.com/rss/articles/CBMigwFBVV95cUxPVjU3ekV2ZUtLQk8zMzE0MGZ1UE11cTh3bEdTSi1penNSODM4ZXR3bjM1RFpRU3VZVE9xcGgycUNTNnFyaUpmSEdwM05SSWs3YkRtaG9rY1JZRERqcXdfc2pHd2hNM2hTZzJNR05kMjBHekVDNkY1VVJWelpkMU1zZldCYw?oc=5" target="_blank">Record selloff in Seoul leads stock rout as markets brace for energy shock</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Asian stocks tanked on Wednesday, with a record-breaking market crash in Seoul, as investors dumped crowded bets on chipmakers on worries a widening Middle East war will drive an oil shock that raises inflation and delays interest rate cuts.

Asian markets sank on March 4 with fears growing that an escalating Middle East war could deliver an energy shock that drives up inflation and hurts the global economy. Panic swept across trading desks in South Korea as local stocks plunged 12%.

South Korean equities suffered their steepest sell-off since 2024 as escalating war risks in the Middle East rattled global investors and triggered heavy foreign outflows across the region. The benchmark KOSPI plunged as much as 7.8% to the 5,790 level on Tuesday.

Asian markets skidded on Wednesday, with investors cutting crowded positions in gold and chipmakers on worries a wider West Asia war could deliver an energy shock that raises inflation and delays rate cuts. Shares in Seoul dived 4% to take two-day losses beyond 11%.

The benchmark KOSPI recorded its largest-ever daily loss of 12.06% Wednesday, surpassing its previous record of 12.02% after the Sept. 11 terrorist attacks on the U.S. in 2001. The main index fell for a second consecutive day to close at 5,093.54 points.