Emerging Markets-AI jitters hit S.Korea, oil shock compounds pressure on Asian stocks
EEM•South Korea leads losses as AI trade unwinds
Most emerging Asian equities lost ground on Monday, led by a 5% drop in South Korean shares as the AI trade unravelled further, while a widening Gulf conflict pushed oil prices higher and rekindled inflation worries across the region.
Seoul shares .KS11 closed down 4.5% after sliding as much as 5.1% as markets reopened after Friday's holiday, taking the benchmark KOSPI's losses for the month to more than 22% and pushing it firmly into bear-market territory.
Taiwan's tech-heavy index .TWII rose as much as 1% before erasing gains to close down 0.5%.
The MSCI EM Asia equities index .MIMS00000PUS slipped to its lowest since early May in the session. The South Korean and Taiwanese benchmark gauges together account for about 60% of the index.
