Published on 28/07/2026 - 7:11 GMT+2•Updated 7:22

Trading was briefly suspended after the Kospi hit its lowest point since April because shares of chipmakers Samsung Electronics and SK Hynix plunged.

The Kospi fell 10.5 percent to 6,051.19 in overnight trading. Samsung shares dropped 12 percent while SK Hynix shares declined 12.7 percent.

Analysts said a key reason for the sell-off in AI-linked stocks is the belief that rising competition from Chinese AI startups and chip firms could reduce profits for global companies whose valuations have soared on the AI wave.

A 466 percent gain in Chinese chipmaker CXMT on its first trading day Monday highlighted these fears. CXMT raised at least 8.6 billion dollars (around 7.6 billion euros) in its initial public offering on Shanghai's tech-focused STAR exchange.

Most other Asian markets also declined, with Tokyo's Nikkei 225 falling 4 percent to 62,350.18. The Taiex in Taiwan dropped 3.9 percent. Hong Kong's Hang Seng slipped 0.1 percent to 25,178.21 while the Shanghai Composite lost 1 percent to 3,820.52.

In Australia the S&P/ASX 200 moved higher, gaining 0.6 percent to 8,944.40.

Oil prices kept falling as the United States and Iran avoided strikes for a third straight day.

Officials in the Middle East said mediators had advanced efforts to bring both sides back to talks.

Brent crude, the global benchmark, fell 0.8 percent to 85.16 dollars a barrel. US benchmark crude oil lost 0.9 percent to 81.86 dollars a barrel.

Wall Street stocks finished mixed on Monday. The S&P 500 rose less than 0.1 percent and the Dow Jones Industrial Average gained 0.5 percent. The Nasdaq composite declined 0.2 percent for its fourth consecutive loss.