Korean KOSPI and Japanese Nikkei 225 indices fell sharply during the June 11 morning session, with KOSPI dropping over 4% and Nikkei 225 declining over 2.6% as of publication time. The sell-off followed Iran's announcement that the Strait of Hormuz is closed to all ships effective June 11, with violators subject to strikes. The Iranian Armed Forces' statement came hours after the U.S. Central Command reported conducting strikes on multiple targets inside Iran starting at 17:15 EDT June 10 (05:15 Beijing time June 11), described as a response to Iran's attacks.
Korean and Japanese Indices Record Steep Intraday Losses
The Korean KOSPI index opened down 2.9% at 7509.62 points on June 11. Major stocks declined, with Mirae Asset Securities falling 6.15%, Samsung Life Insurance down 5.57%, SK SQUARE down 5.49%, Hyundai Motor down 5.15%, and LG Electronics down 5.13%. The index continued to slide after the opening, with losses expanding beyond 4%. Samsung Electronics fell 4% and SK Hynix dropped over 3%.
The Nikkei 225 index opened down 1.32% and quickly widened losses to over 2.7% as of publication time, breaking below the 63,000-point level and reaching its lowest point since May 22.
U.S. Central Command Strikes Iran, Iran Announces Strait Closure
According to Xinhua News Agency, the U.S. Central Command announced on social media on June 10 that its forces began conducting "defensive" strikes on multiple targets inside Iran at 17:15 EDT June 10 (05:15 Beijing time June 11). The strikes were described as a response to Iran's "unprovoked and sustained attacks."
The Iranian Armed Forces stated on June 11 that the Strait of Hormuz is closed to all ships effective immediately, and vessels violating the closure will become targets for strikes. CCTV News reported that on local time June 10, the U.S. Central Command issued a statement saying the Islamic Revolutionary Guard Corps' claim that the Strait of Hormuz is closed is incorrect. That evening, commercial vessels continued to enter and exit the Strait of Hormuz.
According to the latest CCTV News report, Trump stated that "the U.S. bombing of Iran will stop soon, but if no deal is reached, bombing operations will resume on June 11" (EDT).
Oil Prices Surge Above $93, Gold Declines
As of Beijing time on the morning of June 11, international oil prices continued to rise. NYMEX WTI crude oil gained over 3% and stood above $93 per barrel as of publication time.
Precious metals markets declined across the board. Spot gold fell 0.67% and COMEX gold dropped over 1% as of publication time.
U.S. Stocks Fall on Rising Inflation Data
Overnight, U.S. technology stocks declined broadly, with all three major indices closing lower. The Dow Jones fell 1.87% to 49,918.78 points, the Nasdaq dropped 1.98% to 25,169.5 points, and the S&P 500 declined 1.62% to 7,266.99 points.
Most large-cap technology stocks fell. Qualcomm dropped over 6%, Broadcom fell over 5%, AMD, Micron Technology, and TSMC declined over 4%, Tesla and Nvidia fell over 3%, Boeing, Amazon, ASML, Meta, Oracle, and Alphabet-A dropped over 2%, Microsoft fell over 1%, and Intel declined slightly. Apple and Netflix posted small gains.
Data released by the U.S. Department of Labor on June 10 showed that the U.S. Consumer Price Index (CPI) rose 4.2% year-on-year in May, driven by continued increases in energy costs. This exceeded April's 3.8% and marked the highest level since May 2023. May CPI and core CPI rose 0.5% and 0.2% month-on-month, respectively. Analysts noted that the latest inflation data means U.S. consumers face higher living costs and will place greater pressure on the Federal Reserve's monetary policy.
FAQ
What caused Asian stock markets to fall on June 11?
Asian stock markets fell sharply on June 11 following Iran's announcement that the Strait of Hormuz is closed to all ships effective immediately, with violators subject to strikes. The announcement came after the U.S. Central Command reported conducting strikes on multiple targets inside Iran starting at 17:15 EDT June 10 (05:15 Beijing time June 11).
How much did Korean and Japanese stock indices decline on June 11?
The Korean KOSPI index fell over 4% and the Japanese Nikkei 225 index declined over 2.6% as of publication time during the June 11 morning session. The Nikkei 225 broke below the 63,000-point level, reaching its lowest point since May 22.
What did Trump say about U.S. military action against Iran?
According to CCTV News, Trump stated that "the U.S. bombing of Iran will stop soon, but if no deal is reached, bombing operations will resume on June 11" (EDT).
