The South Korean stock market has seen a significant decline, particularly in large-cap tech names that had led the rally year-to-date. This has been attributed to foreign outflow, with high-beta tech and cyclical names being particularly affected by high oil prices. The biggest upside catalyst is the record hedge fund short book. The impact on Asian markets has been higher as Asian economies are more vulnerable to the Strait of Hormuz closure and the sharp momentum trends in many parts of Asia such as Korea. The net oil trade balance is most adverse in Thailand, Malaysia, and Vietnam. If oil prices persist, corporate earnings will likely be squeezed. The Thomson Reuters Trust Principles suggest that profit-taking selling has increased.