The Seoul stock market is leading a broad stock market crash in Asia on Thursday morning, after a marked downturn on Wall Street the night before.
All of the major Asian stock markets are in the red on Thursday morning. The largest decline is in South Korea, where Kospi falls more than two percent.
The decline comes after rising tensions between North and South Korea. The South Korean Ministry of Defense accused North Korea of killing a missing South Korean civil servant this week, writes CNBC.
This is the first time since July 2008 that a South Korean civilian has been killed in North Korea, according to CNBC, which reports to the news agency Yonhap.
This is what the Asian stock markets look like at 5 o’clock on Thursday morning:
- Nikkei 225 in Tokyo down 0.57 percent
- Hang Seng in Hong Kong down 1.77 percent
- Kospi in Seoul down 2.10 percent
- Shanghai Composite down 1.37 percent
- Shenzhen Composite down 1.68 percent
- The FTSE Straits Times in Singapore down 1.06 percent
- ASX 200 in Sydney down 0.98 percent
Sharp fall on Wall Street – Tesla down over 10 percent
Technology stocks weigh
Elsewhere in Asia, it is technology stocks that weigh on the stock markets, after the sector had the same development on Wall Street on Wednesday night. Among other things, the Chinese smartphone manufacturer Xiaomi is down over 4 percent on Thursday morning.
Tencent is also down 1.46 percent, while smartphone maker Xiaomi is down 4.65 percent. Otherwise, Softbank is down 3.48 percent.
Fears that the economy will not pick up as quickly as one had hoped are also helping to pull down Asian stock markets on Thursday morning. The deputy head of the US Federal Reserve, Richard Clarida, said on Wednesday that the US economy is in a “deep pit”, according to Reuters.
Decline on Wall Street
The leading indices on Wall Street also fell markedly the night before, with the S&P 500 ending with a fall of 2.37 per cent.
In addition to the technology giants Facebook, Amazon, Apple, Microsoft and Alphabet, the Tesla share also ended with a decline. The carmaker fell more than ten percent after presenting the latest news about its battery technology at its so-called “Battery Day” earlier this week.
The oil price (Brent spot) has fallen 0.31 percent since midnight to 41.36 dollars a barrel.