KOSPI Falls 8%, Triggers Circuit Breakers, as Big Tech Selloff Hits Asia

South Korea’s KOSPI crashed more than 8% on June 23, triggering circuit breakers twice, as Japan’s Nikkei 225 broke an eight-session winning streak in a broad selloff driven by US technology stocks.

The moves extended a turbulent stretch for Asian equities as Tuesday’s tech-driven reversal erased early gains across the region. Benchmarks in Taiwan, South Korea, and Japan had each climbed at least 40% this year, making the concentrated semiconductor trade the most exposed when US megacap sentiment shifted.

Circuit Breakers Triggered as KOSPI Freefall Deepens

The KOSPI opened at 9,083.54, down 0.34% from the prior close, then collapsed through the 9,000, 8,900, and 8,800 levels and all the way down to 8,500 in rapid succession. The Korea Exchange triggered a sell-side circuit breaker at 11:40 a.m., then activated a first-stage circuit breaker around 2:40 p.m. as the index sank to 8,375.31, an 8.11% decline on the day.

Since opening, the KOSPI has been in freefall. Image Source: Trading View

Wall Street set the tone. Alphabet fell 4.99% after two high-profile AI researchers left the company for rivals. SpaceX shed 16%, its third straight losing session, after the company announced a large investment-grade bond offering that rattled confidence in AI capital spending.

In Tokyo, the Nikkei 225 snapped its recent record run, and is also in freefall, down almost 3% at the time of publishing.

Samsung and SK Hynix Lead Seoul’s Losses

Foreign investors are at the source of the collapse, as there has been net selling in KOSPI shares. Samsung Electronics fell 8.77% to 322,500 won. The drop extended a historic session from the prior day, when Samsung lost the top KOSPI market-cap position to SK Hynix for the first time in 26 years. SK Hynix itself fell a massive 11.55 % to 2.582 million won, despite Micron surging 6.82% overnight.

Han Ji-young of Kiwoom Securities noted that the Magnificent Seven weakness and rising Treasury yields weighed on growth stocks, while falling oil prices tied to US-Iran ceasefire talks could partially cushion the rate burden.

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