KOSPI Falls as Asian Stocks Drop After US Strikes on Iran

KOSPI declined as Asian markets retreated on Thursday after the United States launched strikes on targets in Iran, Tehran announced the closure of the Strait of Hormuz and Brent crude rose to about $95 a barrel.

Regional markets weakened following a sharp selloff on Wall Street. The MSCI index of Asia-Pacific shares outside Japan dropped about 1%. Taiwan’s benchmark slipped 1.5% and Japan’s Nikkei 225 fell roughly 1.5%. South Korea’s KOSPI swung between gains and losses before closing down about 1.2%, after intraday losses of as much as 4.4%, marking its fifth decline in six trading days. On Wall Street, the S&P 500 fell 1.6% and the Nasdaq Composite lost about 2%.

The US military announced a new round of strikes on multiple targets in Iran. President Donald Trump warned, “further attacks would come if no peace deal was reached,” and Iran responded by announcing the closure of the Strait of Hormuz, a major route for global oil shipments. Brent crude rose about 3% to $95.45 a barrel in Asian trade, after settling at $93.10 a barrel the previous day.

Technology and artificial intelligence-linked stocks were among the most affected. Oracle shares fell 8.9% in extended US trading after the company forecast higher fiscal 2027 capital spending than analysts expected and said it planned to raise nearly $40 billion through debt and equity financing.

European futures pointed to further weakness at the open, with pan-regional contracts down about 0.8%, DAX futures off roughly 0.6% and FTSE futures down about 0.9%. The euro edged up to around $1.1546 ahead of a European Central Bank policy decision. The dollar index held near 100.03, supported by safe-haven flows as tensions escalated.

Rate markets moved slightly closer to pricing another Federal Reserve hike. Fed funds futures implied about a 51.6% chance of a rate increase at the Fed’s October 28 meeting. The US 10-year Treasury yield rose about one basis point to roughly 4.55%.

Cryptocurrencies recorded small gains after recent losses, with bitcoin near $62,000 and ether around $1,634. Gold slipped about 0.4% as the dollar remained firm. Higher oil prices and faster US consumer-price inflation are factors that could figure in upcoming central bank policy decisions.