The benchmark KOSPI index plummeted 8.6% to 4,923.47 after a steep tumble on U.S. markets rippled into Asian technology suppliers. Market sentiment deteriorated rapidly amid policy concerns that U.S. Democratic Party gains could decelerate data center construction in states like Texas. In response to the rapid drop, the Korea Exchange paused trading for 20 minutes starting at 9:03 a.m. to stabilize the market. Heavyweight exporters bore the brunt of the downturn, led by double-digit drops in key memory chip producers.
Key points
Global technology volatility swiftly crossed into South Korean markets following the wors…: Global technology volatility swiftly crossed into South Korean markets following the worst single-day U.S. session in over a year.
Policy uncertainties surrounding artificial intelligence data centers in the United State…: Policy uncertainties surrounding artificial intelligence data centers in the United States drove severe investor concern among Asian hardware suppliers.
Broad industrial selling extended well beyond semiconductors, causing significant decline…: Broad industrial selling extended well beyond semiconductors, causing significant declines for major firms like Hyundai Motor, Kia, and LG Energy Solution.
Sources checked by our analysis pipeline: 1
The Korea Exchange (KRX) activated a 20-minute circuit breaker at 9:03 a.m. (0003 GMT), temporarily halting all stock and derivatives trading.
The benchmark KOSPI was down around 500 points, or 8.6%, at 4,923.47 as of 0026 GMT.
"It is time for correction, but we feel that there may be some overreaction to the outcome of the midterm election," said Jun Kwang-woo, chairman of the Institute for Global Economics, a financial thinktank in Seoul,
"Hopefully we will stabilise very soon because after all, we understand that the speed of building AI infrastructure, especially data centres may slow down a bit because of the number of concerns in many states including Texas," said Jun, who is a former chairman of South Korea's National Pension Service.
US stock markets suffered their worst single-day session in more than a year on Thursday, led by a sharp unwind in high-flying technology and semiconductor shares.
Fresh uncertainly over policies on AI and data centres following the sweeping gains for the Democratic Party in the US midterm elections sent shockwaves across hardware and chip suppliers.
Domestic equities face immediate downward pressure as steep overnight tech losses on Wall Street trigger a broader rout across Asian exchanges. However, market observers anticipate that the retreat will be tempered by cheaper crude energy costs and insulated local supply chains. Profit-booking is set to take center stage following a multi-day winning streak that lifted benchmark indexes to multi-month highs.
Elevated real yields are dampening retail interest in non-yielding bullion, redirecting capital toward yielding instruments and defensive assets like the Swiss franc and US Treasuries. This macro transition is curbing investment appetites despite lingering geopolitical friction and a softening US dollar. The shift signals a prolonged phase where precious metals may lag behind equities and industrial commodities.
The British digital lender is pursuing fresh capital to sustain its ongoing operations and growth initiatives. This strategic financial maneuver comes directly on the heels of failed buyout discussions with Nu Holdings. Furthermore, previous headwinds surrounding secondary stake sales have prompted the firm to seek a direct valuation benchmark instead.