South Korea's benchmark KOSPI index tumbled more than 5 percent on July 2 after heavy selling in semiconductor shares, prompting the Korea Exchange to activate a sell-side sidecar.
The KOSPI opened 4.46 percent lower at 7,933.1. By 9:08 a.m. it had fallen 446.8 points, or 5.34 percent, to 7,856.61.
The Korea Exchange activated a sell-side sidecar at around 9:07 a.m., suspending program trading for five minutes after the KOSPI 200 Futures index dropped 5 percent or more. The benchmark later extended losses to 6.23 percent, reaching 7,790.16.
Overnight declines in US markets, including a 1.5 percent drop in the Nasdaq 100 and a 6.3 percent fall in the Philadelphia Semiconductor Index, weighed on sentiment. Samsung Electronics shares fell 7.47 percent and SK hynix dropped 7.73 percent. Federal Reserve Chair Kevin Warsh noted that inflation risks had eased, reducing expectations for a July rate cut.
