Asia Markets Retreat on May 28 as Iran Strikes Send Oil Surging; KOSDAQ Dips 2.5%, SK Hynix Hits $1 Trillion

Asian markets opened sharply lower on May 28 after overnight US military strikes near the Strait of Hormuz — the world’s most critical oil chokepoint — triggered a surge in crude prices and a wave of risk-off selling across the region. Yet by the close, the session had revealed something more complex than a simple selloff: a tale of divergence, with AI-driven memory stocks rebounding, mainland China holding firm, and Korea’s benchmark staging a dramatic intraday recovery from its lowest point.

Brent crude rose +2.57% to $94.62 on supply-disruption fears, and the CBOE Volatility Index (VIX) climbed +3.07% to 16.79 — marking the second consecutive session of rising fear signals. (Yahoo Finance: BZ=F, Yahoo Finance: ^VIX)

Korea: KOSPI Briefly Falls Below 8,000, Stages Dramatic Recovery

The KOSPI closed at 8,185.29 (−0.53%), a modest decline on paper — but the headline number understates the intensity of the session. The index opened at 8,165 (already below the prior close of 8,228), then plunged to an intraday low of 7,841.01 — briefly breaking through the psychologically critical 8,000 level — before a sustained recovery brought it back above 8,100 by the close. (Yahoo Finance: ^KS11)

The KOSDAQ was hit considerably harder. The tech-heavy index fell −2.54% to 1,104.36, with an intraday low of 1,066.79 — a drop of more than 8% from the prior close of 1,161 at the worst point of the morning. The gap between KOSPI and KOSDAQ performance reflects both the oil-driven pressure on export-sensitive large-caps and a broader reset in high-growth technology valuations. (Yahoo Finance: ^KQ11)

SK Hynix: $1 Trillion Club, Ex-Dividend Day, and Still Up 2%

The standout story of the Korean session was SK Hynix (000660.KS), which closed up +2.07% to 2,289,000 KRW despite the broad selloff — and despite it being the stock’s ex-dividend date (dividend: 3,000 KRW per share). A stock going ex-dividend typically sees its price fall by approximately the dividend amount, making SK Hynix’s net gain of over 46,000 KRW all the more significant. (Yahoo Finance: 000660.KS)

SK Hynix has now officially joined Samsung Electronics and Micron in the trillion-dollar market cap club, according to a Yahoo Finance video report. The GuruFocus analysis described the milestone as the culmination of a “1,000% surge” driven by insatiable demand for HBM (High Bandwidth Memory) chips used in AI training systems. Investopedia called it evidence of “the memory shortage minting trillion-dollar companies.”

SK Hynix’s 1-year return now stands at +1,007%, and its Q1 FY2026 EPS came in at 56,670 KRW against a consensus estimate of 40,017 — a 41% beat.

Samsung Electronics Weighs on KOSPI

Samsung Electronics (005930.KS) fell −2.44% to 299,500 KRW, dragging on the broader KOSPI. The stock has underperformed SK Hynix significantly this year: Samsung is up +150% YTD vs. SK Hynix’s +252%. The divergence reflects the market’s assessment that SK Hynix’s HBM focus is more directly aligned with the AI chip upcycle than Samsung’s more diversified semiconductor and consumer electronics mix. (Yahoo Finance: 005930.KS)

Other Korean Highlights

• Samsung SDI (006400.KS): +7.30% to 676,000 KRW — the session’s standout gainer among large-caps. (Yahoo Finance: 006400.KS)
• NAVER (035420.KS): +3.12% to 205,000 KRW — internet and AI-related software services showing relative resilience. (Yahoo Finance: 035420.KS)
• LG Electronics (066570.KS): −4.04% to 225,500 KRW — consumer electronics vulnerable to input cost pressure from rising energy prices. (Yahoo Finance: 066570.KS)
• USD/KRW: 1,502.88 (+0.19%) — the won weakened modestly, reflecting mild risk-off dollar strength. (Yahoo Finance: KRW=X)

Japan: Nikkei Dips 0.5%, Pulls Back From Record Territory

The Nikkei 225 closed at 64,693.12 (−0.47%), pulling back from its prior close of 64,999. The intraday range of 63,875 – 65,165 shows that Japan also saw an early selloff that was largely recovered before the close. The Nikkei remains comfortably above its 52-week range of 37,320 – 66,428, suggesting the geopolitical shock was treated as a dip-buying opportunity rather than a trend reversal. (Yahoo Finance: ^N225)

Japan’s energy import sensitivity — as a country with essentially zero domestic oil production — makes it acutely vulnerable to Strait of Hormuz disruptions. However, the yen’s reaction was muted, reflecting market caution about the Bank of Japan’s policy trajectory rather than a major currency repricing.

Hong Kong: Hang Seng Slips 1.3% as 25,000 Tested Intraday

The Hang Seng Index bore the sharpest selling pressure among the major Asia-Pacific indices, closing at 25,006.16 (−1.27%). At its intraday low of 24,727.26, the index briefly fell well below the 25,000 level before recovering into the close. The 25,000 level has served as a key psychological support area; the close above it preserved near-term chart structure for the index. (Yahoo Finance: ^HSI)

China: Mainland Markets Diverge, Show Relative Resilience

China’s mainland markets offered a notable exception to the region-wide selloff. The SSE Composite closed at approximately 4,098.64, essentially flat from its prior session close. The Shenzhen Component (399001.SZ) advanced +0.80% to 15,861.89 — the strongest close among major Asian indices on the day. (Yahoo Finance: 000001.SS)

The divergence between mainland China and the rest of Asia is consistent with a market that is partially insulated from the specific US-Iran oil shock narrative — partly due to China’s longer-term energy diversification strategy and partly due to persistent domestic stimulus expectations providing a domestic bid.

Broader Asia: Taiwan and Australia Worst Performers Among Benchmarks

Among the region’s other major indices, Taiwan and Australia were among the hardest hit on a percentage basis:

• Taiwan TWII: 43,636.44 (−1.40%) — semiconductor and tech-heavy index sensitive to the same AI-cycle sentiment as Korean KOSDAQ. (Yahoo Finance: ^TWII)
• Australia All Ordinaries (AORD): 8,819.60 (−1.40%) — energy-sensitive economy caught between oil import costs and commodity export dynamics. (Yahoo Finance: ^AORD)
• Indonesia JKSE: 6,130.19 (−1.23%) (Yahoo Finance: ^JKSE)
• Singapore STI: 4,989.19 (−0.79%) (Yahoo Finance: ^STI)
• Malaysia KLSE: 1,684.93 (−0.83%) (Yahoo Finance: ^KLSE)

Macro Backdrop: Oil, Gold, and the Risk-Off Divergence

The day’s commodity moves were unusual in their divergence. Brent crude surged +2.57% on Hormuz fears — a classic geopolitical risk-premium spike. Yet gold fell −1.46% to $4,416. In a typical risk-off environment, gold and oil move together. The gold decline may reflect dollar strength, which typically pressures gold prices, or profit-taking after the metal’s extended run near all-time highs around $4,480. (Yahoo Finance: GC=F)

Bitcoin fell −3.08% to $73,305, adding to evidence that the session was characterized by a broad reduction in risk exposure. (Yahoo Finance: BTC-USD)

Per MT Newswires, “Higher Crude, Persian Gulf Outlooks Lowers Asian Stock Markets” — the headline directly attributing today’s broad regional decline to the oil/Middle East catalyst.

What to Watch in the Remainder of the Week

1. US futures remain in the red: S&P 500 futures −0.25%, Nasdaq 100 futures −0.50%, Dow futures −0.21%. A gap-down open on Wall Street remains likely. (Yahoo Finance: ES=F)
2. April PCE inflation data: Due later this week. A higher-than-expected print would further complicate the Fed’s rate-cut timeline. New Fed Chair Kevin Warsh faces a “dual price shock” — from energy and trade-side inflation. Check the Economic Calendar for the release time.
3. Oil trajectory and Iran negotiations: Will the Doha talks resume? Any de-escalation signal could send Brent crude back below $90.
4. KOSPI 8,000 level: Today’s intraday breach was reversed, but the speed of the early selloff shows that the psychological level is not as solid as it appeared after Tuesday’s record close. If global risk-off sentiment intensifies, 8,000 will face a more sustained test. Track the KOSPI in real time.
5. SK Hynix momentum vs. the broader tech selloff: Can the AI memory trade continue to decouple from macro headwinds? The $1 trillion market cap milestone is more than symbolic — it signals that institutional allocation to Korean memory stocks has reached a scale that previously would have seemed impossible. Track KOSPI semiconductor moves as a leading indicator of the global AI infrastructure trade.

Sources

1. Yahoo Finance — KOSPI Composite Index (^KS11)
2. Yahoo Finance — KOSDAQ Composite Index (^KQ11)
3. Yahoo Finance — Nikkei 225 (^N225)
4. Yahoo Finance — Hang Seng Index (^HSI)
5. Yahoo Finance — SSE Composite Index (000001.SS)
6. Yahoo Finance — SK hynix Inc. (000660.KS)
7. Yahoo Finance — Samsung Electronics Co., Ltd. (005930.KS)
8. Yahoo Finance Video — “SK Hynix and Micron lead AI boom, join trillion-dollar club”
9. GuruFocus via Yahoo Finance — “SK Hynix Surges 1,000% As AI Memory Stocks Hit $1 Trillion”
10. Investopedia via Yahoo Finance — “The Memory Shortage Is Minting Trillion-Dollar Companies”
11. MT Newswires via Yahoo Finance — “Higher Crude, Persian Gulf Outlooks Lowers Asian Stock Markets”