SEOUL, March 27 (AJP) — The Seoul bourse led broad losses across Asia as the toll from the Middle East crisis weighed heavily on the region, largely dependent on energy and commodities, with the critical transit Strait of Hormuz remaining crippled for a month.
In Japan, the Nikkei 225 fell 1.61 percent to 52,738.55 in morning trade, as selling pressure mounted on concerns over a possible deployment of U.S. ground troops. Expectations for ceasefire negotiations also weakened following continued pressure on Iran from U.S. President Donald Trump.
Hong Kong’s Hang Seng Index fell 0.35 percent to 24,768.66, China’s Shanghai Composite slipped 0.22 percent to 3,880.44, and Taiwan’s TAIEX dropped 1.54 percent to 32,825.21.
The retreat was sharper in Korean markets, reflecting the heavy weight of chipmakers Samsung Electronics and SK hynix.
Samsung Electronics fell 4.39 percent to 172,200 won, while SK hynix dropped 5.47 percent to 882,000 won in morning trade.
The weakness followed concerns over Google’s newly unveiled “TurboQuant” algorithm, which is expected to significantly improve data efficiency and potentially reduce memory demand for artificial intelligence workloads.
The technology, which compresses data to roughly one-sixth of its original size, is seen as easing memory bottlenecks in large-scale AI models, raising doubts over the long-held equation that AI demand directly translates into memory demand.
The benchmark KOSPI fell 2.79 percent to 5,308.24, while the KOSDAQ dropped 1.02 percent to 1,125.03 as of 11:00 a.m.
Broader market pressure was compounded by rising oil prices as hopes for a near-term resolution between the United States and Iran faded. Brent crude futures for May delivery rose 5.66 percent to $108.01 per barrel, while West Texas Intermediate gained 4.61 percent to $94.48.
Overnight, U.S. stocks closed sharply lower. The Dow Jones Industrial Average fell 1.01 percent, while the S&P 500 and Nasdaq Composite dropped 1.74 percent and 2.38 percent, respectively. The Nasdaq entered correction territory, falling more than 10 percent from its recent peak, led by declines in major chip stocks including Nvidia, SanDisk and Micron Technology. The Philadelphia Semiconductor Index plunged 4.79 percent.
Across sectors, declines were broad-based.
Autos and batteries fell, with Hyundai Motor down 4.34 percent to 468,750 won, Kia slipping 3.17 percent to 149,800 won, and LG Energy Solution losing 4.16 percent to 368,500 won. Samsung SDI dropped 4.41 percent to 379,000 won.
Defense and heavy industry stocks also declined, as Hanwha Aerospace fell 4.53 percent to 1,307,000 won, HD Hyundai Heavy Industries lost 5.68 percent to 482,000 won, and HD Hyundai Electric slid 7.67 percent to 891,000 won.
In chemicals and industrials, SK Square dropped 5.02 percent to 530,000 won, while Doosan Enerbility fell 5.45 percent to 95,400 won.
Financials traded lower, with KB Financial down 2.50 percent to 148,400 won, Samsung Life Insurance slipping 2.25 percent to 217,000 won, Mirae Asset Securities falling 3.83 percent to 62,800 won, and Shinhan Financial declining 3.00 percent to 90,600 won.
Samsung Biologics fell 2.33 percent to 1,548,000 won, Samsung C&T dropped 6.47 percent to 260,000 won, Hanwha Ocean declined 6.21 percent to 117,900 won, Hyundai Mobis slipped 1.38 percent to 393,000 won, and Naver edged down 1.89 percent to 207,500 won.
The won stayed above the 1,500 level for a third straight session as U.S.-Iran ceasefire talks stalled, hovering at 1,509.20 per dollar from a previous close of 1,507.0.
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