Kospi jumps more than 4%, triggers buy-side sidecar after tech shares rebound
The Kospi jumped around 4 percent on Tuesday, rebounding from the Broadcom shock that sent tech shares down during the previous session, and caused the Korea Exchange (KRX) to activate a buy-side sidecar.
A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on June 9.NEWS1
The Kospi jumped around 4 percent on Tuesday, rebounding from the Broadcom shock that sent tech shares down during the previous session, and caused the Korea Exchange (KRX) to activate a buy-side sidecar.
The KRX activated a buy-side sidecar for Kospi-listed stocks at 9:12 a.m. on Tuesday, suspending trading for five minutes.
A sidecar halts program trading when certain market indexes fluctuate beyond a designated threshold. A buy-side sidecar is triggered when the Kospi 200 Futures index increases 5 percent or more for at least one minute.
Stocks opened sharply higher on Tuesday as major technology shares bounced back amid a cease-fire between Israel and Iran and sentiment that business fundamentals of AI-related sectors remain strong.
After opening 2.85 percent higher, the Kospi extended its gains, rising 247.84 points, or 3.31 percent, to 7,732.25 as of 9:15 a.m.
The rebound came after the Kospi slid more than 8 percent on Monday on a tech hemorrhage sparked by concerns over AI profitability and a possible rate hike by the U.S. Federal Reserve, following the release of hotter-than-expected U.S. jobs data for May.
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Overnight, major U.S. indexes closed mixed as investors digested news that Israel and Iran halted attacks on each other after a warning from U.S. President Donald Trump and as technology stocks bounced back from their steep fall on Friday.
A screen in Hana Bank's trading room in central Seoul shows the Kosdaq opening on June 9.NEWS1
The Dow Jones Industrial Average closed 0.16 percent lower, while the S&P 500 rose 0.3 percent and the tech-heavy Nasdaq composite added 0.86 percent.
Micron surged 9.87 percent. SanDisk increased 5.3 percent, AI chip giant Nvidia 1.73 percent and AMD 5.14 percent on bets that the AI boom is not over.
In Seoul, Samsung Electronics jumped 4.06 percent, and its chipmaking rival SK hynix soared 6.59 percent.
AI investment firm SK Square escalated 6.44 percent, and Samsung Electro-Mechanics shot up 10.04 percent.
Automaker Hyundai Motor climbed 2.35 percent, and its sister Kia advanced 6.01 percent.
Power plant manufacturer Doosan Enerbility and defense giant Hanwha Aerospace added 3.96 percent and 1.79 percent, respectively.
On the other hand, internet portal operator Naver plunged 5.91 percent after its sharp rise the previous day. Home appliances maker LG Electronics slid 6.9 percent.
The local currency weakened by 3.8 won from the previous session to trade at 1,531.2 won against the dollar.
