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Kospi Sheds 2.85% As Foreign Selling Hammers Chip Leaders

Foreign selling tied to anxiety over stretched AI valuations forced a rare trading halt.

Overview

  • The index closed at 4,004.42 after dropping as low as about 3,867.81 during the session.
  • The Korea Exchange activated a sell-side “sidecar” once futures slid more than 5%, marking the first sell-side halt since April 7.
  • Foreign investors were net sellers of roughly 2.5 trillion won on the day and nearly 5 trillion won over two sessions, outweighing retail purchases of about 2.6 trillion won as institutions sold around 79 billion won.
  • The won weakened to approximately 1,449.4 per dollar, its lowest level since early April.
  • Samsung Electronics and SK hynix retreated from recent highs to close at 100,600 won and 579,000 won as investors reacted to AI valuation warnings, U.S. shutdown concerns, and a new U.S. ban on Nvidia’s latest AI chip exports to China.