Asian markets took a hit on Tuesday, with South Korea's KOSPI leading the decline, down 2.66% to 6,518.92. The sell-off was driven by semiconductor stocks, as reports emerged of increased U.S. pressure on Korean chipmakers to invest in American facilities.

South Korea Stocks Slide as SK Hynix Shares Tumble

Shares of SK Hynix in Seoul dropped 5.03% to 1.587 million Korean won, while Samsung Electronics fell 2.92% to 249,500 won. The pain extended to U.S.-listed shares as well: SK Hynix's American depositary receipt (ADR) declined 4.92% to $155.37 in Monday's U.S. session, and slipped another 0.89% to $153.99 in after-hours trading, according to market data.

Japan's Nikkei 225 also fell, down 1.04% to 64,848.36.

US Pressures Korean Chipmakers Over American Investment

According to a report from South Korean outlet Chosun, U.S. officials pressed the South Korean government and local semiconductor companies to invest in U.S. memory-chip production and ensure stable supplies. The reported pressure intensified after Seoul announced its KRW 800 trillion ($578.5 billion) Honam Semiconductor Mega Project.

Korean officials said Washington's concern appears to center less on the domestic project itself and more on delays surrounding Korean companies' planned investments in the U.S. The discussions reportedly also took place during Trade Minister Kim Jeong-kwan's four-day visit to the U.S.

The South Korean government has maintained that the semiconductor investment demands are separate from the $350 billion U.S. investment agreement reached between the two countries last year. Seoul is expected to announce its first U.S. investment project in September.

US Futures Edge Higher as Oil Prices Slip

In the U.S., futures were mixed but mostly higher. Dow futures fell 3.00 points, or 0.01%, to 53,486.00, while S&P 500 futures rose 3.00 points, or 0.04%, to 7,672.75. Nasdaq 100 futures gained 13.25 points, or 0.05%, to 29,119.00 as of around 8:45 p.m. EDT.

In commodities, WTI crude oil fell 0.08% to $84.94 per barrel, while Brent crude declined 0.30% to $91.89 per barrel. Natural gas futures slipped 1.11% to $2.751 per MMBtu. The U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 98.973, down 0.01% on the day.

Iran Sanctions Add to Market Uncertainty

Adding to the market's unease, U.S. Treasury Secretary Scott Bessent on Monday announced a new campaign targeting nearly 60 entities, individuals and vessels linked to Iran's nuclear, missile, cyber and oil networks. The measures also broaden sanctions exposure across digital assets, technology, gold, aviation and shipping, with foreign financial institutions facing potential penalties for helping Iran evade sanctions.

Iranian Finance Minister Ali Madanizadeh told state-run Islamic Republic of Iran News Network that Tehran is prepared for the measures and warned that Iran's response could go beyond defense, CNN reported on Monday. "Apparently, (the US) has now decided to try another failure," Madanizadeh stated.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.