KOSPI plunges 4.67% and triggers a sell-side sidecar on fears of tighter US AI data-centre rules
The Korea Exchange halted program trading for five minutes at 10:16 a.m. after the index fell 265.65 points to 5,418.15, Yonhap reports; where it closes is not yet known.
Why it matters
Korea's market is one of the most exposed to AI spending because Samsung Electronics and SK hynix supply the memory chips inside AI servers. The selloff turned a 1.82% fall at the open into a 4.67% slide within an hour, enough to trip the exchange's sell-side sidecar, which fires when KOSPI 200 futures drop 5% for a minute. Traders tied the move to the Democratic sweep of the US midterms and fears of tighter rules on AI data centres. Watch the close, foreign selling and whether chip stocks in Taiwan and Japan follow.
Key facts
- KOSPI down 4.67% to 5,418.15 at 10:16 a.m.
- Fell 265.65 points
- Opened 1.82% lower
- Program trading halted for five minutes
- Sidecar triggers when KOSPI 200 futures fall 5% for one minute
How the story developed
- 5 Nov, 00:00 UTC Confirmed Korean stocks open 1.8% lower on fears a Democratic Congress will tighten AI data-centre rules
- 5 Nov, 01:00 UTC Confirmed Korean stocks slide more than 2% as SK hynix drops 5.8% on fears of tighter US AI data-centre rules
- 5 Nov, 02:00 UTC Developing KOSPI plunges 4.67% and triggers a sell-side sidecar on fears of tighter US AI data-centre rules