【Iran Crisis】Japan and South Korea Stock Markets Face "Black Monday" - Korean Stocks Plunge Over 6%, Triggered 6th "Sidecar" Mechanism This Year; Nikkei Index Falls Over 1,800 Points

The tense situation in the Middle East shows no signs of easing, and international oil prices remain high. Market concerns about triggering global inflation are forcing a reassessment of major central banks’ monetary policy paths. Countries heavily dependent on oil, such as Japan and South Korea, saw their stock markets become targets of sell-offs again on Monday (23rd).

South Korea’s KOSPI index once dropped 6.6%, hitting 5,397 points, and temporarily triggered the sixth “Sidecar” mechanism of the year, pausing algorithmic trading for 5 minutes. The KOSPI closed down 375 points at 5,405, a decline of 6.49%.

Japan’s Nikkei 225 index fell as much as 2,683 points or 5%, reaching a low of 50,688 points. It closed down 1,857 points or 3.48%, at 51,515.

Other Asia-Pacific stock markets were also under pressure. Taiwan’s Weighted Index closed down 821 points or 2.45%, at 32,722. Australia’s stock market was also soft, with the ASX 200 closing at 8,552, down 75 points or 0.88%.

Market analysts believe that over 90% of South Korea’s fossil fuel demand must rely on imports, making its economy highly sensitive to the security of global energy transportation routes. If the Strait of Hormuz remains closed for an extended period, South Korea’s industry and manufacturing sectors could face sharply rising energy costs or even supply disruptions.

Goldman Sachs Asia-Pacific (excluding Japan) President Shinda said the bank remains “quite optimistic” about South Korea and believes reaching the KOSPI index target of 7,000 points “is possible.”