{"id":65522,"date":"2026-07-28T03:08:16","date_gmt":"2026-07-28T07:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-south-korean-chip-selloff-and-middle-east-tensions\/65522\/"},"modified":"2026-07-28T03:08:16","modified_gmt":"2026-07-28T07:08:16","slug":"global-markets-shaken-by-south-korean-chip-selloff-and-middle-east-tensions","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-south-korean-chip-selloff-and-middle-east-tensions\/65522\/","title":{"rendered":"Global Markets Shaken by South Korean Chip Selloff and Middle East Tensions"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea\u2019s KOSPI index plummeted 10.84%<\/strong> in its worst session since early March, triggered by a massive selloff in semiconductor giants Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>).<\/li>\n<li><strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) shares crashed 13.4%<\/strong>, marking the company&#39;s largest single-day percentage decline since the 2008 global financial crisis.<\/li>\n<li><strong>Oman has proposed a regional management framework for the Strait of Hormuz<\/strong> to Iran, aiming to replace sole Iranian control with a shared oversight system funded by voluntary user fees.<\/li>\n<li><strong>Spain\u2019s labor market showed resilience in Q2<\/strong> with the unemployment rate falling to <strong>9.87%<\/strong>, significantly beating economist estimates of <strong>10.10%<\/strong>.<\/li>\n<li><strong>Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>) lowered its annual revenue forecast<\/strong>, citing intense competition and cautious consumer sentiment in China, while warning that Middle East tensions remain a primary risk.<\/li>\n<\/ul>\n<h2>Asian Markets: Semiconductor Rout Triggers KOSPI Collapse<\/h2>\n<p>South Korean equities suffered a historic rout on Tuesday as the benchmark <strong>KOSPI index fell 10.84%<\/strong>, closing at its lowest level in months. The selloff was concentrated in the semiconductor sector, where investors reacted to heightening competition from Chinese chipmakers and a reassessment of AI infrastructure spending. Trading was temporarily halted by &quot;sidecar&quot; curbs as the index plunged, with the two largest constituents, Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>), accounting for nearly half of the index&#39;s total weight.<\/p>\n<p>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) ended the day down <strong>13.4%<\/strong>, its steepest daily drop since October 2008. SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) also faced severe pressure, following a record low for its U.S.-listed shares overnight. Analysts noted that the market is increasingly concerned that the massive capital expenditures in AI may not yield immediate returns, particularly as Chinese state-backed firms begin producing advanced lithography equipment to rival global leaders.<\/p>\n<h2>Geopolitics: Oman Proposes Shared Control of Hormuz<\/h2>\n<p>In a significant diplomatic move, Oman has pitched a plan to Iran for a <strong>joint regional management framework<\/strong> for the Strait of Hormuz. The proposal, which reportedly has broad regional backing, seeks to establish a mechanism modeled after the Strait of Malacca system. Under this framework, users of the strategic waterway would pay voluntary fees to fund navigation services, environmental protection, and search-and-rescue efforts, effectively ending Iran&#39;s unilateral control over the passage.<\/p>\n<p>The proposal comes at a time of heightened maritime tension, with the U.S. naval blockade reportedly still in force. While the plan aims to stabilize global energy flows, market observers remain skeptical of Iran&#39;s willingness to surrender its primary geopolitical leverage. Simultaneously, <strong>Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>)<\/strong> warned that its second-half forecasts assume no further intensification of Middle East conflicts, noting that any escalation remains a significant threat to global supply chains and consumer confidence.<\/p>\n<h2>European Economic Data: Mixed Signals from Spain and France<\/h2>\n<p>European economic indicators provided a mixed outlook on Tuesday. <strong>Spain\u2019s unemployment rate fell to 9.87% in Q2<\/strong>, down from <strong>10.83%<\/strong> in the previous quarter and better than the <strong>10.10%<\/strong> expected by analysts. Despite the strong labor data, Spanish retail sales growth was uneven; while the unadjusted June figure rose <strong>2.4%<\/strong>, the seasonally adjusted (SA) year-on-year growth was just <strong>0.5%<\/strong>, missing the <strong>1.3%<\/strong> estimate.<\/p>\n<p>In France, <strong>consumer confidence rose to 86 in July<\/strong>, edging past expectations of <strong>85<\/strong> and improving from June\u2019s reading of <strong>84<\/strong>. This marks a continued gradual recovery in sentiment, though the index remains below long-term averages. Meanwhile, security concerns in Northern Europe led <strong>Finland to temporarily close its southern airspace<\/strong> near the Russian border due to the risk of stray drone incursions following recent strikes in the region.<\/p>\n<h2>Emerging Markets and Indicators: South Africa Leading Indicator Dips<\/h2>\n<p>South Africa\u2019s <strong>leading business cycle indicator fell to 118.2 in May<\/strong>, down from <strong>118.9<\/strong> in April. The decline suggests a potential cooling in economic momentum for the second half of the year. In currency markets, the <strong>Bank of Japan (BoJ) Yen Index<\/strong> was recorded at <strong>71.0<\/strong> on July 28, a slight decrease from the previous reading of <strong>71.34<\/strong>, as traders continue to monitor the central bank&#39;s stance on monetary policy amid global volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea\u2019s KOSPI index plummeted 10.84% in its worst session since early March, triggered by a massive selloff 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