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      Asian Equities Decline Sharply Amid Technology Selloff and Oil Price Concerns

      Asian stock markets experienced significant declines on October 13, 2026, primarily driven by a selloff in technology and semiconductor shares. South Korea's Kospi index fell approximately 7%, dropping below the 6,000 mark for the first time since July 31. Other major indices also reported losses, with Japan's Nikkei down 2.6%, China's ChiNext falling 3%, and the CSI 300 and Shanghai Composite decreasing by 1.3% and 1.2%, respectively. This downturn reflects growing concerns about the sustainability of the recent AI-driven market rally and the impact of elevated oil prices linked to ongoing conflicts in the Middle East.

      In the oil market, prices edged slightly lower as Saudi Arabia announced plans to increase its pipeline crude export capacity to 10 million barrels per day. Energy Minister Prince Abdulaziz bin Salman indicated that converting a gas pipeline could add 1.2 million barrels per day within the next few weeks. This expansion aims to enhance the kingdom's export capabilities through the Red Sea, circumventing the disrupted Strait of Hormuz, where recent reports indicated Iranian forces struck six commercial vessels, marking the highest single-day tally since the onset of the conflict.

      In currency markets, US Treasury yields eased, providing support for gold prices and leading to a slight weakening of the US dollar. The Japanese yen strengthened following the release of producer price data, which showed a 6.8% increase in wholesale prices year-on-year, keeping expectations for a near-term interest rate hike by the Bank of Japan alive. Meanwhile, the Reserve Bank of Australia's recent meeting minutes reiterated a hawkish stance, citing inflation risks stemming from domestic capacity constraints and global economic pressures.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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