Seoul's Kospi stock index dived more than 8 percent to lead a rout across Asia on Monday as tech firms were hammered and strong US jobs data fueled bets on a Federal Reserve interest rate hike.News that Iran and Israel had traded fire sparked worries about an escalation of the Middle East crisis, adding to the gloomy mood on trading floors and sending oil prices surging more than three percent.
The technology sector bore the brunt of losses on Monday as investors cashed out following a breathtaking surge in recent months powered by a race into all things linked to artificial intelligence.
The selling came after a closely watched report on Friday showed more than double the amount of US jobs than expected were created in May, while those in the previous two months were revised higher.
Analysts said that showed the world's top economy remained resilient in the face of surging prices, but ramped up bets on the Fed raising interest rates.
Yields on US Treasury bonds rose as investors anticipated higher rates, while the dollar strengthened against its main rivals.
