South Korea’s Kospi, which has swung between waves of buying and selling amid the artificial intelligence (AI) frenzy, crashed on Thursday, November 5, tumbling 5.3% to settle at 5,383.80.
The sharp selling triggered a temporary suspension of program trading on the main exchange, while the tech-heavy Kosdaq also activated a sell-side sidecar around noon as the index dropped below the 700 mark.
The sell-off in key heavyweights, including Samsung Electronics and memory chipmaker SK Hynix, dragged the Kospi to its biggest single-day decline in three weeks, even as Wall Street closed sharply higher.
Semiconductor equipment and components manufacturers also came under pressure, with Hanmi Semiconductor and Samsung Electro-Mechanics recording significant declines. The weakness followed a drop of more than 3% in the Philadelphia Semiconductor Index overnight, even as the broader US stock market ended higher.
Investors are concerned that Democratic victories in the US midterm elections could lead to tighter restrictions on artificial intelligence infrastructure and data centre development.