South Korea\u2019s KOSPI index was the weakest major market in Asia, tumbling as much as 8.8% on heavy selling in chipmaking stocks. Samsung Electronics Co Ltd fell 4.7%, while SK Hynix Inc slipped 1.1%. The losses in SK Hynix were partly limited after the company announced an advanced chips partnership with AI company NVIDIA Corporation, though the broader sector remained under pressure.<\/p>\n
Japan\u2019s Nikkei 225 index dropped 3.6%, driven largely by declines in major technology names amid concerns that the recent AI-focused rally may have overshot fundamentals. SoftBank Group Corp. fell 7.5% and was among the largest drags on the benchmark. Chip-related firms also retreated sharply, with SUMCO Corp. and Renesas Electronics Corp each sliding more than 10%.<\/p>\n
Japan\u2019s broader TOPIX index declined 2.7%, weighed down not only by tech weakness but also by revised macroeconomic data. Updated figures showed Japan\u2019s gross domestic product grew 1.8% in the first quarter, below the previous estimate of 2.1%, as business spending cooled.<\/p>\n
Beyond the technology sector, Asian markets faced additional headwinds from escalating geopolitical tensions. Iran and Israel traded airstrikes on Sunday, their first open exchange of hostilities since an early-April ceasefire. The development undermined hopes for a durable peace deal with Iran, even as U.S. President Donald Trump and other officials indicated an agreement was close. Oil prices rose sharply on the weekend events, further unsettling regional markets.<\/p>\n
China\u2019s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined 1.6% and 1.2%, respectively. Hong Kong\u2019s Hang Seng Index shed 1%, while Singapore\u2019s Straits Times Index lost 1.2%.<\/p>\n
Sentiment was also affected by a strong U.S. nonfarm payrolls report on Friday, which had already triggered a broad selloff on Wall Street, with major U.S. benchmarks falling between 1% and 4.5%. The robust jobs data increased expectations that the Federal Reserve could maintain or potentially raise interest rates, a scenario seen as unfavorable for risk-driven markets. Nonetheless, S&P 500 Futures and Nasdaq 100 Futures were up 0.2% and 0.7%, respectively, in Asian trading, suggesting some expectations for a rebound in U.S. technology shares after Friday\u2019s slump.<\/p>\n
Which Asian markets recorded the largest declines?<\/strong> How did major tech stocks perform in South Korea and Japan?<\/strong> What recent data influenced interest rate expectations?<\/strong> How did geopolitical developments affect markets and commodities?<\/strong>
The largest decline was in South Korea\u2019s KOSPI, which fell as much as 8.8%. Japan\u2019s Nikkei 225 dropped 3.6%, and the TOPIX lost 2.7%.<\/p>\n
Samsung Electronics Co Ltd fell 4.7% and SK Hynix Inc slipped 1.1% on the KOSPI. In Japan, SoftBank Group Corp. declined 7.5%, while SUMCO Corp. and Renesas Electronics Corp each fell more than 10%.<\/p>\n
A stronger-than-expected U.S. nonfarm payrolls report on Friday increased expectations that the Federal Reserve may keep interest rates elevated or raise them, pressuring risk-oriented assets globally.<\/p>\n
An exchange of airstrikes between Iran and Israel raised geopolitical risk and weakened hopes for a lasting peace deal with Iran, contributing to declines in Asian equities and a sharp rise in oil prices.<\/p>\n