Asian equities slide as KOSPI drops 7.04%

Asian equities fell on Oct. 15, with the KOSPI down 7.04% and the Nikkei off 5.08%, extending a tech-led sell-off before UK August GDP data.

Jim Reid, strategist at Deutsche Bank, said markets had just had an “incredibly tumultuous 24 hours,” after a strong US CPI print and mounting concern around the AI trade. The move put equities at the center of the global market reaction, with Asia showing the clearest stress.

KOSPI breaker frames Asia sell-off

The KOSPI’s 7.04% overnight fall was accompanied by a circuit breaker, a trading halt used when price moves breach exchange thresholds. The Nikkei fell 5.08% over the same session, extending pressure across large Asian technology and export shares.

The inflation print matters for equities because higher US rates for longer can reduce the value investors assign to future earnings. That mechanism is more exposed in technology shares, where valuations often depend on profit expected further out.

UK markets now face a domestic data test as investors wait for the August GDP report on Oct. 15. Chancellor Rachel Reeves said the IMF had backed the UK’s economic plans in Bangkok and said she would “stay the path” as she prepares her budget in two weeks’ time.