Key Takeaways
- • The benchmark KOSPI plunged 7.49% on Thursday, falling 450.02 points to 5,558.79, as technology stocks led a heavy sell-off, according to The Times of India.
- • The Korea Exchange triggered a five-minute sell-side "sidecar" halt on program sell orders after a sharp drop in index futures.
- • The index is on course for a seventh consecutive session of losses, its longest losing streak since September 2024, and has fallen nearly 35% from its June record high.
- • Samsung Electronics fell 9.05% and SK Hynix dropped 11.06%, with foreign investors selling a net 355.6 billion won of South Korean shares.
- • The rout followed a tech-led Wall Street sell-off after US consumer price inflation accelerated more than expected in September, raising concerns about Federal Reserve rate increases.
Summary
South Korea's benchmark KOSPI plunged 7.49% on Thursday as technology stocks came under heavy selling pressure, according to The Times of India. The index dropped 450.02 points to 5,558.79, putting it on course for a seventh consecutive session of losses, its longest losing streak since September 2024. The KOSPI has fallen nearly 35% from its record high in June.
The Korea Exchange activated a sell-side "sidecar," an automatic mechanism that suspends program sell orders for five minutes after steep losses in index futures. The measure is designed to temporarily cool trading during periods of heavy selling.
Major technology companies accounted for some of the steepest losses. Samsung Electronics shares fell 9.05% and SK Hynix dropped 11.06%, reflecting broader weakness across Asia's semiconductor supply chain. LG Energy Solution lost 3.44%, Hyundai Motor declined 3.99% and Kia Corp fell 2.03%. Market breadth was heavily negative, with 768 of 889 stocks declining and 90 advancing. Foreign investors sold a net 355.6 billion won in shares. The won strengthened 0.21% to 1,339.5 per dollar.
The decline spread across Asia. MSCI's broadest Asia-Pacific index excluding Japan fell 3.3%, and Japan's Nikkei 225 dropped 4.8%. Taiwan Semiconductor Manufacturing Company fell 2%, Kioxia Holdings plunged more than 11% and SoftBank Group declined 9.4%. The selling followed a technology-led sell-off on Wall Street, where the S&P 500 fell 1.1% and the Nasdaq Composite lost 1.9% overnight. The article notes that US consumer price inflation accelerated more than expected in September, fuelling concerns that the Federal Reserve could raise interest rates later this year.
The article also reports that retail investors were hit hardest during a July sell-off, when the index fell around 20%, with losses in highly leveraged single-stock ETFs contributing to the damage. In bond markets, the three-year treasury yield fell 3 basis points to 3.855% and the 10-year yield declined 2.1 basis points to 4.224%. Brent crude fell 1.7% to $104.20 a barrel as traders weighed potential US sanctions relief against attacks on shipping through the Strait of Hormuz.
The Korea Exchange activated a sell-side "sidecar," an automatic mechanism that suspends program sell orders for five minutes after steep losses in index futures. The measure is designed to temporarily cool trading during periods of heavy selling.
Major technology companies accounted for some of the steepest losses. Samsung Electronics shares fell 9.05% and SK Hynix dropped 11.06%, reflecting broader weakness across Asia's semiconductor supply chain. LG Energy Solution lost 3.44%, Hyundai Motor declined 3.99% and Kia Corp fell 2.03%. Market breadth was heavily negative, with 768 of 889 stocks declining and 90 advancing. Foreign investors sold a net 355.6 billion won in shares. The won strengthened 0.21% to 1,339.5 per dollar.
The decline spread across Asia. MSCI's broadest Asia-Pacific index excluding Japan fell 3.3%, and Japan's Nikkei 225 dropped 4.8%. Taiwan Semiconductor Manufacturing Company fell 2%, Kioxia Holdings plunged more than 11% and SoftBank Group declined 9.4%. The selling followed a technology-led sell-off on Wall Street, where the S&P 500 fell 1.1% and the Nasdaq Composite lost 1.9% overnight. The article notes that US consumer price inflation accelerated more than expected in September, fuelling concerns that the Federal Reserve could raise interest rates later this year.
The article also reports that retail investors were hit hardest during a July sell-off, when the index fell around 20%, with losses in highly leveraged single-stock ETFs contributing to the damage. In bond markets, the three-year treasury yield fell 3 basis points to 3.855% and the 10-year yield declined 2.1 basis points to 4.224%. Brent crude fell 1.7% to $104.20 a barrel as traders weighed potential US sanctions relief against attacks on shipping through the Strait of Hormuz.
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