Thailand, South Korea shares plunge, triggering circuit breaker — what investors need to know

Market Overview - Investors across Asia faced significant turbulence as stock markets in Thailand and South Korea experienced sharp declines, leading to trading halts and substantial market value erosion amid escalating tensions in the Middle East [1] Thailand Market Summary - The benchmark SET Index in Thailand fell by 8%, triggering an automatic circuit breaker that halted trading for 30 minutes [2][3] - The decline has erased nearly 14% of gains made after Prime Minister Anutin Charnvirakul's election victory, reducing the index's year-to-date gain to 7.1% [4][3] - Thailand's economy is particularly vulnerable to rising oil prices due to heavy energy imports, raising concerns about inflation, current account pressure, and shrinking corporate margins [3][4] South Korea Market Summary - The KOSPI index in South Korea plunged by 12.06%, marking its largest daily percentage loss since its inception in 1980, with losses reaching 12.65% during the session [7][15] - Over two days, the South Korean market lost 817.6 trillion won (approximately $553.82 billion) in market capitalization, with a 7.24% drop occurring on the previous day [9][15] - The heavy reliance on Middle Eastern oil has heightened investor fears, as South Korea is the world's fourth-largest oil buyer, importing about 70% of its crude from the region [10][15] Currency and Major Stocks - The South Korean won briefly fell below the 1,500 per dollar mark, reaching 1,505.8, its weakest level since March 2009, before closing at 1,485.7 [11][15] - Major companies such as Samsung Electronics, SK Hynix, Hyundai Motor, and Korean Air Lines experienced significant losses during the market slump [12][15]