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KOSPI Plunges 8% as AI Infrastructure Concerns and Inflation Trigger Trading Halt

BearishHigh impact
KOSPI5,554.22 −7.57%NI225¥64,425.73 −4.90%SOX11,684.38 −4.30%

Asian technology shares fell dramatically on Thursday as market sentiment shifted across regional indices. South Korea's benchmark KOSPI Composite Index (KRX:KOSPI) plunged as much as 8%, activating a first-stage circuit breaker that halted trading for 20 minutes in Seoul. Japan's Japan 225 Index (TVC:NI225) dropped 4.9%, while the PHLX Semiconductor index (NASDAQ:SOX) declined 4.3%.

The immediate spark for the market drop was elevated U.S. inflation data, but growing doubts over the financing and profitability of artificial intelligence infrastructure drove the broader sell-off. Heavyweights in chip manufacturing and technology funding sustained severe losses, with Samsung Electronics falling 9.5% and SK Hynix dropping 11.4%. In Japan, SoftBank, Kioxia, and Tokyo Electron also posted sharp declines, while U.S. firm CoreWeave slid nearly 16% alongside a drop in Oracle (ORCL).

Despite falling stock prices, underlying physical demand for artificial intelligence hardware remains steady. Semiconductor equipment producer ASML Holding (ASML) reported that equipment demand should outpace supply through 2028. The next major indicator for market health will be financial results from Taiwan Semiconductor Manufacturing Co. (TSM), which recently achieved record quarterly revenue.

Key points

  • South Korea's KOSPI index fell as much as 8%, triggering a 20-minute trading halt.
  • Rising U.S. inflation and doubts over AI infrastructure returns sparked the broader sell-off.
  • Samsung Electronics dropped 9.5% and SK Hynix plunged 11.4% during the session.
  • Japan's benchmark index fell 4.9% as SoftBank, Kioxia, and Tokyo Electron suffered sharp losses.
  • Equipment manufacturer ASML reported that AI hardware demand is expected to exceed supply through 2028.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did the KOSPI crash on October 15?

The KOSPI fell as much as 8% due to higher U.S. inflation data and investor concerns regarding the financing, cash generation, and profitability of companies building artificial intelligence infrastructure.

What triggered the trading halt on the Korea Exchange?

The Korea Exchange triggered a first-stage circuit breaker after the benchmark KOSPI index remained at least 8% below its previous closing price for one minute, halting trading for 20 minutes.

How did major chipmaker stocks react to the market fall?

Major semiconductor stocks sustained severe drops, with Samsung Electronics losing 9.5%, SK Hynix plunging 11.4%, Kioxia falling 11.2%, and Tokyo Electron sliding 7.3%.