Stocks post largest dip in history

Vietnam's benchmark VN-Index started the day in the red, following the development of geopolitical tension in the Middle East in over the weekend.

Panic selling and margin calls sent the index down more than 6% as of 9.50 a.m., a drop comparable to April 6 last year when U.S. President Donald Trump announced reciprocal tariffs on most nations.

"In addition to the impact of interest-rate pressure, the market is also facing risks related to inflation, exports, financial volatility and supply chain disruptions," an MBS analyst said.

Tyler Nguyen Manh Dung, Senior Director of Market Strategy Research at HSC Securities, said a sudden surge in margin calls from securities firms was the main reason the market corrected by more than 100 points. He also predicted further declines Tuesday due to weak buying force.

All 30 stocks of the VN-30 basket closed with a drop, with 24 of them hitting floor prices, including major tickers such as FPT of tech giant FPT Corporation, gas, MSN of conglomerate Masan Group, and VIC of private conglomerate Vingroup.

Foreign investors were net sellers for the fifth straight session, selling VND348 billion ($13.2 million) worth of stocks, mostly VHM of property giant Vinhomes and FPT.

Asian markets suffered a similar fate as the inflationary jolt from surging oil prices threatened to raise living costs and interest rates across the globe, while investors desperate for liquidity fled to the U.S. dollar, Reuters reported.

Brent crude soared 27% to $117.58 a barrel, the biggest daily gain since at least 1988, which came on top of a 28% rise last week. U.S. crude shot up a staggering 28% to $116.51, promising to push petrol prices quickly skyward.

The news was sobering for Japan, a major importer of oil and gas, knocking the Nikkei down 7.0% on top of a 5.5% drop last week.

South Korea's high-flying market fell closer to Earth with a drop of 8.2%, having already shed more than 10% last week.

China is another big oil importer, though it also has a huge stockpile of crude; its blue-chip index fell 1.7%.