Asia-Pacific markets are facing severe turbulence. South Korea’s KOSPI plunged sharply at the open, triggering a circuit breaker and halting trading for 20 minutes.
The index fell as much as 8.8% during the session, breaking below 5,000 points and dropping to 4,911—its 11th circuit-breaker halt this year. Heavyweight stocks tumbled: Samsung Electronics fell more than 10%, while SK Hynix briefly came close to a 14% loss. South Korea’s finance ministry said during the session that it would step in to curb irrational market volatility.
The latest sell-off was sparked by overnight trading in U.S. stocks. The Nasdaq closed down 5.5%, while the Philadelphia Semiconductor Index plunged 12.2%. Markets are betting that the AI and data-center sectors will face tighter regulation after the U.S. midterm elections, triggering a broad sell-off in tech stocks and wiping $2.5 trillion off their market value in a single day.
With its stock market closely tied to the semiconductor sector, South Korea is at the front of this sell-off chain, and its market volatility has been markedly higher than that of other Asian markets. Risk sentiment is spreading rapidly, putting pressure on crypto markets as well. ETH fell in tandem, highlighting the knock-on effects.
Global risk assets have entered a synchronized correction, with tech and semiconductors at the heart of the selling pressure. The market’s next move will depend on the strength of policy measures to cushion the blow and when investor sentiment stabilizes.
The index fell as much as 8.8% during the session, breaking below 5,000 points and dropping to 4,911—its 11th circuit-breaker halt this year. Heavyweight stocks tumbled: Samsung Electronics fell more than 10%, while SK Hynix briefly came close to a 14% loss. South Korea’s finance ministry said during the session that it would step in to curb irrational market volatility.
The latest sell-off was sparked by overnight trading in U.S. stocks. The Nasdaq closed down 5.5%, while the Philadelphia Semiconductor Index plunged 12.2%. Markets are betting that the AI and data-center sectors will face tighter regulation after the U.S. midterm elections, triggering a broad sell-off in tech stocks and wiping $2.5 trillion off their market value in a single day.
With its stock market closely tied to the semiconductor sector, South Korea is at the front of this sell-off chain, and its market volatility has been markedly higher than that of other Asian markets. Risk sentiment is spreading rapidly, putting pressure on crypto markets as well. ETH fell in tandem, highlighting the knock-on effects.
Global risk assets have entered a synchronized correction, with tech and semiconductors at the heart of the selling pressure. The market’s next move will depend on the strength of policy measures to cushion the blow and when investor sentiment stabilizes.