Kospi Falls 8.4%; Trading Halted After Chip Selloff

South Korea’s KOSPI fell 8.4% to 7,477 on Monday and trading was halted for 20 minutes after Samsung Electronics and SK Hynix each slid about 10% in a US-led semiconductor selloff. The benchmark tripped a circuit breaker shortly after the market opened. The KOSDAQ dropped more than 7%.

The decline spread across Asia. Japan’s Nikkei 225 fell 3.4% on Monday as losses in technology stocks widened regionally.

The selloff followed a steep drop on Wall Street on Friday, when the Nasdaq Composite fell 4.18% to 25,709.43, its largest one-day decline since April 2025. Market participants cited a stronger-than-expected US jobs report for May, which led traders to reduce expectations for the timing and size of Federal Reserve rate cuts this year. Treasury yields rose after the jobs data, increasing pressure on interest-sensitive technology companies that are investing in artificial intelligence infrastructure.

Samsung Electronics and SK Hynix account for a large share of the KOSPI’s market value. Their near-10% intraday losses amplified the index decline and weighed on investor sentiment for the semiconductor sector.

Traders also pointed to rising geopolitical tensions in the Middle East as a factor that heightened risk aversion during the session.

Cryptocurrencies moved differently on Monday. Bitcoin traded near $63,020, up about 2.7% over 24 hours, and Ethereum rose roughly 6% to about $1,680. Bitcoin remains more than 45% below its October 2025 record above $126,000, and spot Bitcoin exchange-traded fund outflows have continued to affect prices.

Market participants said they will watch upcoming economic data and corporate earnings for signs of whether the risk-off tone will persist or stabilize. The scale of Monday’s moves highlighted volatility in tech-heavy indexes and the sensitivity of chipmakers to shifts in rate expectations and global demand.