SEOUL: South Korea's stock benchmark plunged over 8% on Monday, tripping circuit breakers, after robust U.S. jobs data lifted bets on a Federal Reserve rate hike and unleashed a selloff in the tech-heavy market that had powered the broader AI rally.
The KOSPI fell 8.3% to close at 7,484.41, marking its biggest daily fall since March 4. The index is now 15% below the peak of 8,801.49 hit on June 2.
Chip heavyweight Samsung Electronics tumbled 10.2%, and peer SK Hynix dropped 7.7% even as Nvidia's CEO, Jensen Huang, said SK Hynix remained its "biggest partner" while unveiling new deals during his trip to South Korea.
The two South Korean chipmakers have been the driving force behind the index's world-beating surge, buoyed by record profits. Their market capitalisations this year alone have jumped more than 150% and 200%, respectively, now accounting for over half of the benchmark and propelling them into the $1 trillion club.
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