--- title: "Sharp Declines in South Korean, Japanese, and Taiwanese Stocks; South Korean Market Plummets 8% Triggering Circuit Breaker; Samsung Electronics Drops 10% at Open; TSMC Falls 5.7%" type: "News" locale: "en" url: "https://longbridge.com/en/news/288982236.md" description: "Global risk assets suffered heavy losses amid escalating tensions between the US and Iran and rising interest rate expectations driven by strong employment data. Asia-Pacific stocks opened significantly lower, with South Korea's Kospi index plunging over 8% to trigger a circuit breaker and Samsung Electronics dropping 10%; Japan's Nikkei 225 fell 3.4%, Taiwan's weighted index dropped 5.4%, and TSMC declined 5.7%. The South Korean won hit a multi-year low, prompting government measures to stabilize the market. US stock futures also weakened, with investors focusing on the upcoming CPI/PPI data and the SpaceX IPO" datetime: "2026-06-08T01:08:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288982236.md) - [en](https://longbridge.com/en/news/288982236.md) - [zh-HK](https://longbridge.com/zh-HK/news/288982236.md) --- # Sharp Declines in South Korean, Japanese, and Taiwanese Stocks; South Korean Market Plummets 8% Triggering Circuit Breaker; Samsung Electronics Drops 10% at Open; TSMC Falls 5.7% The ceasefire agreement between the US and Iran is precarious, compounded by last week's strong employment data that has heightened expectations for interest rate hikes, delivering multiple shocks to global risk assets. Iran launched multiple rounds of missiles at Israel, further straining the already fragile ceasefire situation in the Middle East. **Asia-Pacific stocks opened sharply lower on Monday, with South Korea's benchmark Kospi index plunging over 8%, triggering a circuit breaker mechanism**; Japan's Nikkei 225 index fell approximately 3.4%; and Taiwan's weighted stock price index dropped 5.4% at the open, with TSMC falling 5.7%. The South Korean stock market had previously been one of the best-performing major markets globally this year, leading gains driven by AI-related stocks. However, this sell-off has rapidly erased that advantage. Meanwhile, the exchange rate of the South Korean won fell to its lowest level since 2009, prompting the South Korean government to announce a series of measures to curb pressure on the local currency's depreciation. US stock futures weakened in tandem, with Nasdaq 100 index futures turning from an early decline to a 0.3% gain. **This shock occurred as US stocks were already showing signs of fatigue.** Last Friday, the Nasdaq Composite Index plunged 4.18%, marking its largest single-day drop since April 2025; the S&P 500 Index fell 2.64%, failing to extend its winning streak to ten consecutive weeks; and the Dow Jones Industrial Average dropped 695 points in a single day. The trigger for this round of selling was the May employment report, which exceeded expectations—data that intensified market bets on Federal Reserve interest rate hikes, thereby sparking concerns that higher financing costs would suppress AI expansion investments. This week, investors face tests from two major events. On Wednesday and Thursday, the US will release the May Consumer Price Index (CPI) and Producer Price Index (PPI), respectively, with markets expecting both datasets to show persistent inflationary pressures. On Friday, Elon Musk's SpaceX will officially go public, expected to become one of the largest IPOs in Wall Street history and one of the most significant tests of the market's AI valuation narrative. **Update at 8:46:** The Korea Composite Stock Price Index plunged over 8%, triggering a trading suspension mechanism; after the circuit breaker was lifted and trading resumed, the decline in South Korean stocks narrowed to less than 5%. Samsung Electronics and SK Hynix led the declines, with Samsung Electronics dropping 10% at the open. The Nikkei 225 Index fell approximately 3.4%, and the TOPIX Index dropped more than 1%; the MSCI Asia Stock Index overall declined 1.6%. Brent crude oil prices rose 2.4% to $95.33 per barrel, and WTI crude oil increased 2.2% to $92.57 per barrel. Spot gold opened lower but moved higher, rising 0.38% to $4,343.80 per ounce at the time of writing. The cryptocurrency market bucked the trend, with Bitcoin rising 2.2% to $63,181.45 and Ethereum increasing 3.5% to $1,684.87. Continuing updates... Risk Warning and Disclaimer The market involves risks, and investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. 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