South Korea and Japan bear brunt of global stock sell-offs amid oil shock

South China Morning PostEN 2 min read 100% complete by Zhang ShidongMarch 17, 2026 at 12:30 AM

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South Korea and Japan's stock markets have experienced the steepest declines globally since late February, triggered by rising oil prices and geopolitical uncertainty stemming from Middle East supply disruptions. The Kospi index in Seoul fell 12%, while Tokyo’s Nikkei 225 slid nearly 9%. As heavily reliant fuel importers, both countries are particularly vulnerable to the oil shock, with South Korea even capping oil price increases. Other markets also saw declines, though less severe, with the S&P 500 dropping 3.6%. China's CSI 300 Index performed best due to its renewable energy exposure. The oil price surge, driven by concerns over the Strait of Hormuz, has stoked stagflation fears, complicating central banks' monetary policy decisions.

Key Entities & Roles

Key Player Opposition Context

France 40% Germany 40% Hong Kong 40% United Kingdom 40% United States 40% Bank of Japan 50% Seoul 50% Europe ×260% Iran ×270% Middle East 70% South Korea ×490% Japan ×490%

Keywords

oil shock 100% stock sell-offs 90% fuel imports 80% inflation 70% global markets 70% energy trade deficit 60% economic growth 60% geopolitical uncertainty 50% monetary easing 40% strait of hormuz 40%