KOSPI took over Asian markets in its Monday deal, and investors were concerned about US-Iraq tensions, rising oil prices and the upcoming fiscal season and the United States CPI report. The Korea benchmark KOSPI index fell by more than 7 per cent, down 7,000 points for the first time, and the Kosdaq index fell by nearly 2 per cent.
Market sentiment worsened as military clashes between the United States and Iran escalated. Iran claims to have struck at United States installations in the Gulf region and declared the Strait of Hormuz closed. Despite the fact that United States President Trump denied this claim that the waterway remained open to commercial navigation, oil prices continued to rise significantly, with Brent crude oil futures rising by 3.7 per cent to approximately $79.81 per barrel.
According to analysts, despite increased geopolitical risks, the market remains focused on the start of the economic data and financial season. Many large United States banks will publish quarterly performances this week, and investors will follow closely Netflix, Johnson and United Health. At the same time, the United States Consumer Price Index (CPI) report will be released on Tuesday, which may affect future Federal Reserve interest rate decisions.