With worries about Broadcom-driven artificial intelligence (AI) growth slowing overlapping with caution over U.S. tightening, the KOSPI plunged 8% on the 8th, slipping to the 7,400 level. The KOSPI's decline rate for the day ranks ninth on record.
The KOSPI finished the session at 7,484.41, down 676.18 points (8.29%) from the previous trading day. As the early-session drop exceeded 8%, the Korea Exchange (KRX) triggered a circuit breaker on the main board. Bargain hunting flowed in intraday and briefly lifted the index back above the 7,800 level, but it fell 8% again just before the close.
The day's drop ranks ninth on record by decline rate. The biggest drop on record is 12.06% on Mar. 4, reflecting the shock of the U.S.-Iran war. It is followed by Sept. 12, 2001 (12.02%), Apr. 17, 200 (11.63%), Oct. 24, 2008 (10.57%), Oct. 16, 2008 (9.44%), Aug. 5, 2024 (8.77%), Mar. 19, 2020 (8.39%), and Jan. 5, 1981 (8.39%).
It is seen as the domestic market reflecting the sharp drop in U.S. stocks over the weekend. As Broadcom's AI Semiconductor business growth fell short of market expectations, concerns grew about a slowdown in the AI investment cycle, and stronger-than-expected U.S. jobs data highlighted the possibility of additional tightening by the Federal Reserve (Fed), further denting investor sentiment.
Large-cap stocks are also broadly lower. Samsung Electronics (10.18%), SK hynix (7.68%), Samsung Electronics preferred (8.77%), SK Square (11.13%), and Hyundai Motor (8.73%) all fell. The sharp early-session drops in individual names also triggered circuit breakers in those stocks.
On the main board, only 42 stocks finished higher, while 876 fell. Just three stocks were unchanged.