South Korea's Kospi Plunges 9%, Won Hits 17-Year Low as Global Markets Seesaw Between AI Optimism and Geopolitical Tension

According to analysts including Florian Ielpo from Lombard Odier and Ben Jones from Invesco, global markets experienced sharp turbulence in early June amid conflicting forces: AI-driven optimism supporting equity rallies against geopolitical tensions from U.S.-Iran friction and uncertainty over the Strait of Hormuz. South Korea's Kospi index plunged nearly 9% in hours as the Korean won fell to a 17-year low on June 11, while crude oil remained above $95 per barrel, raising stagflation concerns.

Ielpo warned that sustained oil prices above $95 per barrel pose a stagflation threat, while German 10-year bond yields approached 15-year highs and Japan's 10-year government bond yield hit a 30-year record. Ben Jones noted that while geopolitical risks typically pass and markets recover, current market correlations between rates, inflation, oil, and tech investments leave "nowhere to hide" during volatility.