Kospi surge triggers buy-side sidecar

The Korea Exchange briefly halted program trading after a chip-led rally pushed the Kospi nearly 5 percent higher.

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Currency traders watch monitors near a screen showing the Kospi at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, Aug. 12.

Korea's bourse operator on Wednesday activated a buy-side temporary trading curb, known locally as a sidecar, for the Kospi as the stock index rose sharply, led by a chip rally.

Program trading for Kospi-listed shares was suspended for five minutes at 11:57 a.m., according to the Korea Exchange (KRX).

After opening 1.47 percent higher, the Kospi rose 315.69 points, or 4.97 percent, to 6,661.22 as of 12:15 p.m.

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The stock rise came as semiconductor shares gained ground despite overnight losses on Wall Street.

A buy-side sidecar is triggered when the Kospi 200 Futures index rises 5 percent or more for at least one minute.

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