Korean stocks plunged more than 8 percent late Monday morning after the Korea Exchange (KRX) resumed trading following a 20-minute suspension. The drop came amid extreme volatility triggered by recent U.S.-Israeli strikes on Iran, with the KOSPI index falling over 450 points. Global energy price swings and weaker-than-expected U.S. jobs data also weighed on the market.
As of 11:02 a.m. on Monday, the benchmark KOSPI index fell 450.57 points, or 8.07 percent, to 5,134.3. The Korea Exchange (KRX) activated a circuit breaker at 10:31 a.m., suspending trading for 20 minutes after the KOSPI crashed 452.8 points, or 8.11 percent, to 5,132.07.
A circuit breaker is triggered when the index remains 8 percent below the previous session's level for one minute. Last Wednesday, the KRX also issued a circuit breaker as the main index plunged 12.06 percent, marking the steepest one-day decline since September 12, 2001, following the U.S. September 11 terrorist attacks.
Earlier in the session, a sell-side sidecar was activated, halting sales for five minutes, which occurs when the KOSPI 200 Futures index moves 5 percent or more for at least one minute.
Investors are monitoring global energy price volatility, with the U.S. benchmark West Texas Intermediate (WTI) crude surpassing $100 per barrel on Sunday (U.S. time). The market also responded to weaker-than-expected U.S. jobs data released last week, where nonfarm payrolls dropped by 92,000 in February, missing expectations for a gain of 59,000.
The Korean won traded at 1,496.3 against the U.S. dollar, down 19.9 won from the previous session. This event highlights the impact of recent geopolitical tensions and economic indicators on the Korean stock market.
