Global markets fall as Middle East conflict and AI sell-off hit stocks
11 reported
Stock markets across Asia-Pacific countries fell on June 8, 2026, as investors reacted to a strong US employment report, renewed conflict in the Middle East, and concerns about the AI boom. South Korea’s KOSPI index dropped nearly 9%, triggering a trading halt, while Japan’s Nikkei 225 fell 3.8%. The sell-off followed a 2.64% drop in the S&P 500 on Friday, triggered by a surprisingly strong US employment report that led traders to expect a rise in US interest rates. Technology stocks have been falling on fears that the AI race is becoming a battle over who can raise and spend the most money, as ChatGPT and Anthropic prepare to float on the stock market. Oil prices jumped, with Brent crude hitting $98 a barrel after reports of explosions in central Tehran and Israeli strikes on strategic defense systems in Iran. Europe’s Stoxx 600 index dropped to a two-week low, weighed by Middle East tensions and a global sell-off in AI stocks. The UK’s FTSE 100 fell 0.4% at the start of trading, while oil producers BP and Shell both rose 1.5%.
What’s reported
South Korea’s KOSPI index fell nearly 9%, triggering a trading halt for 20 minutes, the third time this year and ninth in history.
Japan’s Nikkei 225 fell 3.8%.
The S&P 500 fell 2.64% on Friday after a strong US employment report.
Brent crude oil rose 5% to $98 a barrel after explosions in central Tehran and Israeli strikes on strategic defense systems in Iran.
Europe’s Stoxx 600 index fell to a two-week low.
The FTSE 100 fell 42 points (0.4%) to 10,326 points at the start of trading.
UK permanent job placements fell at the fastest pace since July 2025, according to a KPMG and REC report.
German factory orders fell 3.8% in April, with automotive orders down 5.3% and electrical equipment orders down 16.3%.
Bank of England’s Alan Taylor said interest rates do not need to go higher at the current level of 3.75%, unless a worst-case scenario occurs.
Samsung Electronics shares fell 9.2% and SK Hynix dropped 6.4% on South Korea’s market.
Nvidia CEO Jensen Huang met with SK Group chairman Chey Tae-Won in Seoul to celebrate a tie-up on next-generation memory for AI factories.
Key figures
Kyle Rodda, senior financial market analyst at Capital.com
Charu Chanana, chief investment strategist at Saxo
Kathleen Brooks, research director at XTB
Alan Taylor, Bank of England policymaker
Jensen Huang, CEO of Nvidia
Chey Tae-Won, chairman of SK Group
Sources: The Guardian
