South Korean stocks surged over 4% on February 3, rebounding from the previous day's drop and triggering a buy-side circuit breaker. The Korea Exchange halted trading for five minutes at 9:26 a.m., the first such activation since last year. Institutional and foreign investors bought up heavyweight shares amid bargain hunting.
On February 3, Seoul's stock market saw the KOSPI index rebound sharply from a 5.26% plunge the previous day, activating a buy-side circuit breaker. The Korea Exchange (KRX) implemented the "sidecar" measure at 9:26 a.m. after KOSPI 200 futures rose over 5%, halting trading for five minutes—the first such event since April 10 last year.
The KOSPI opened at 5,114.81, up 3.34%, and reached 5,121.72 (a 3.48% gain) in the first 15 minutes. By 11:20 a.m., it stood at 5,181.41, adding 231.74 points or 4.68%. Monday's close at 4,949.67 was attributed to profit-taking amid the U.S. Federal Reserve chair nomination and falling gold prices.
Financial authorities described the prior drop as short-term profit-taking, stating that "the real economy and financial market conditions remain solid." January exports surged at the fastest pace in 56 months, and consumer sentiment stayed above baseline for nine straight months. Positive U.S. ISM manufacturing PMI data for January, showing growth after a year, bolstered sentiment, while President Trump's nomination of hawkish Kevin Warsh as Fed chair drove down gold and silver prices.
Most large-cap shares advanced: Samsung Electronics rose 5.52% to 6.58%, SK hynix jumped 6.02% to 7.83%, Hyundai Motor added 1.57%, Hanwha Aerospace gained 3.95% to 4.6%, and KB Financial climbed 2.92% to 3.22%. The Korean won traded at 1,448.8 against the U.S. dollar, strengthening by 14.3 to 15.5 won from the prior session.
Investors are monitoring the Fed's policy shifts and escalating trade tensions. The KRX had triggered a sell-side breaker the day before, highlighting increased market volatility.
