Asia markets slide on Kospi sinks 3%

May 15, 2026 (MLN): Asia markets traded mostly lower on Friday, led by a sharp selloff in South Korea, as investors closely monitored the second day of crucial talks between U.S. President Donald Trump and Chinese President Xi Jinping.

South Korea’s benchmark Kospi erased earlier gains and plunged more than 3%, retreating after recently crossing the 8,000-point mark for the first time, according to CNBC.

The decline was driven by mounting pressure on heavyweight technology shares and concerns over labor unrest at chip giant Samsung Electronics.

The tech-heavy Kosdaq index also came under pressure, falling 2.61%.

Elsewhere in the region, Japan’s Nikkei 225 slipped 1.1%, while the broader Topix index edged down 0.13%. Australia’s S&P/ASX 200 traded nearly flat.

In Greater China, Hong Kong’s Hang Seng Index declined 0.89%, whereas mainland China’s CSI 300 remained largely unchanged. India’s Nifty 50 managed modest gains of 0.2%.

South Korean equities had recently rallied to record levels, with the Kospi crossing the 7,000 threshold earlier this month after Samsung Electronics surpassed a $1tr market capitalization milestone.

However, analysts have increasingly warned about concentration risks in South Korea’s market, particularly due to the dominance of artificial intelligence and semiconductor-related stocks.

According to Manulife Investment Management, Samsung Electronics and SK Hynix together accounted for a record 42.2% of the Kospi in May.

Investor sentiment also weakened after shares of Samsung Electronics dropped more than 5% following reports that the company’s labor union would proceed with an 18-day strike starting May 21.

The planned action is expected to involve over 45,000 workers despite management offering to resume wage negotiations without conditions.

The union stated it could return to talks after June 7.

Market participants are also watching developments from Beijing, where Donald Trump arrived earlier this week for high-level discussions with Xi Jinping.

The U.S. delegation includes prominent business leaders such as Elon Musk, chief executive of Tesla, and Jensen Huang of Nvidia.

During the talks, Xi reportedly cautioned that mishandling the Taiwan issue could push relations between Washington and Beijing toward “clashes and even conflicts,” warning that bilateral ties could face serious risks if tensions escalate further.

Meanwhile, U.S. stock futures were little changed in overnight trading. Futures linked to the Dow Jones Industrial Average eased 10 points, while S&P 500 futures dipped marginally and Nasdaq 100 futures edged slightly higher.

On Wall Street, U.S. equities ended Thursday’s session firmly higher. The Dow Jones Industrial Average reclaimed the 50,000 level after strong earnings from Cisco Systems boosted investor confidence.

The S&P 500 advanced 0.77% to close at a fresh record of 7,501.24, while the Nasdaq Composite climbed 0.88% to another all-time closing high of 26,635.22.

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