Kospi Plunges 8.8%, Triggering 20-Minute Halt as AI Chip Sell-off Sweeps Asia
Updated
Updated · Financial Times · Jun 8
Kospi Plunges 8.8%, Triggering 20-Minute Halt as AI Chip Sell-off Sweeps Asia
3 articles · Updated · Financial Times · Jun 8
Summary
South Korea’s Kospi sank as much as 8.8% in early Monday trading, forcing a 20-minute halt before trimming losses to under 5% by late morning.
Samsung Electronics and SK Hynix fell more than 10%; together they make up about 40% of the index, magnifying the sell-off.
The slide spread across Asia after the Nasdaq’s 4.2% Friday drop: Japan’s Nikkei lost 3.9%, Taiwan’s Taiex fell as much as 6%, while Hong Kong and mainland China declined more modestly.
Foreign investors sold a net $10 billion of Korean shares last week, pushing the won to its weakest against the dollar since March 2009 and prompting Seoul to announce currency-support measures.
Analysts tied the rout to worries over stretched AI valuations and recent chip-sector news, though Nomura said memory-demand fears may be overstated and Nvidia’s Jensen Huang called the drop a buying opportunity.