Asian equities retreated sharply, led by South Korea, where the KOSPI dropped 6.1% after briefly surpassing the 8,000 level earlier in the session. The decline triggered profit-taking in global semiconductor names, one of the strongest-performing segments in recent months. Samsung Electronics fell 8.6%, and SK Hynix lost 7.7%, while U.S. memory-chip maker Micron Technology was down 2.2% in premarket trading. Mainland Chinese stocks were more resilient than regional peers despite the broader weakness.<\/p>\n
The risk-off tone spread to other regions. U.S. equity futures moved lower, with S&P 500 contracts down 0.8% and Nasdaq 100 futures off about 1.1%. In Europe, Germany\u2019s DAX fell 1.2%, while the FTSE 100 and France\u2019s CAC 40 each declined by roughly 1%. Market participants pared back recent enthusiasm following a strong rally, as geopolitical uncertainty and rising bond yields weighed on sentiment. Investors were also looking ahead to U.S. industrial production data for April and the Empire State manufacturing survey for May.<\/p>\n
Oil prices advanced around 3% on Friday and remained on track for a strong weekly gain. Brent futures rose about 2.9% to $108.75, and crude futures climbed 3.2% to $104.42. The Strait of Hormuz effectively remained closed, and efforts to end the conflict were stalled. President Donald Trump said he was \u201closing patience\u201d with Iran and asserted that the United States did not need the Strait of Hormuz open \u201cat all,\u201d comments that contributed to concerns over potential prolonged disruption to Gulf energy flows.<\/p>\n
Trump departed Beijing after more than two hours of talks with Chinese President Xi Jinping on Thursday. The summit delivered few concrete policy measures, though the tone was described as warmer. Trump stated that both countries wanted the conflict with Iran to end, reiterated that Iran should not obtain nuclear weapons, and claimed \u201cfantastic trade deals\u201d had been reached, without providing details. Chinese officials referred to \u201ca series of new common understandings,\u201d while analysts such as Adam Crisafulli of Vital Knowledge judged that the trip\u2019s headlines were not \u201cnarrative-shifting.\u201d<\/p>\n
Government bonds sold off across major markets as investors reassessed inflation risks and central bank expectations. Deutsche Bank strategists highlighted that U.S. rates were also pressured by lukewarm demand at recent T-bill auctions, following increases in auction sizes. The U.S. two-year Treasury yield moved above 4.05%, while the 10-year yield approached 4.52%.<\/p>\n
In Japan, the 20-year government bond yield rose to its highest level since 1996 after stronger-than-expected producer prices bolstered expectations that the Bank of Japan could continue tightening policy. European bond futures also declined, reflecting the broader global move higher in yields.<\/p>\n
What triggered the selloff in South Korean equities?<\/strong> How did the selloff impact global technology shares?<\/strong> Why are oil prices rising?<\/strong> What is happening to global bond yields?<\/strong>
The KOSPI fell 6.1% as investors took profits in technology and semiconductor stocks after recent strong performance, with Samsung Electronics and SK Hynix posting sharp losses.<\/p>\n
The decline in South Korean chipmakers weighed on semiconductor names globally, with Micron Technology down 2.2% in U.S. premarket trading.<\/p>\n
Oil prices rose around 3% as the Strait of Hormuz effectively remained closed, conflict-resolution efforts stalled, and President Trump\u2019s comments on Iran raised concerns about prolonged disruption to Gulf energy flows.<\/p>\n
Government bond yields rose across major markets due to increased inflation concerns, weak demand at U.S. T-bill auctions, and expectations that central banks, including the Bank of Japan, may continue or intensify policy tightening.<\/p>\n