Asia markets tumble as Middle East tensions spike. South Korea's Kospi plunged 12.1% Wednesday, marking its worst single-day decline after surging over 75% last year. Semiconductor giants Samsung and SK Hynix fell nearly 12% and 10% respectively, as profit-taking accelerated amid rising geopolitical risks. The market's heavy concentration in memory chip leaders, which represent almost 50% of the index, amplified the selloff. Analysts attribute the decline partly to concerns that AI datacenter adoption may slow due to higher energy costs. South Korea's manufacturing-dependent economy remains particularly vulnerable to Middle East volatility given its reliance on oil imports. Japan's Nikkei also declined 3.61% as regional risk sentiment deteriorated.
