South Korea's KOSPI index collapsed more than 8% on Monday, triggering a circuit breaker that suspended trading for 20 minutes. The benchmark opened at a loss of 8.4% to 7,477, dragged down by a roughly 10% intraday drop in Samsung Electronics and SK Hynix. The rout came after a brutal Friday on Wall Street, where the Nasdaq Composite plunged 4.18% to 25,709.43 — its steepest one-day decline since April 2025.
Asia-wide selloff
The KOSDAQ index fell more than 7% alongside the KOSPI. Japan's Nikkei 225 slid 3.4% as the selloff spread across the region. The immediate catalyst was a stronger-than-expected US jobs report for May, which slashed expectations for Federal Reserve rate cuts. Higher Treasury yields reignited concerns that elevated borrowing costs would weigh on technology companies pouring capital into AI infrastructure.
Crypto takes a different path
Bitcoin traded near $63,020 late Monday, up about 2.7% over 24 hours. Ethereum climbed roughly 6% to $1,680. The gains stand in contrast to the bloodbath in equities, but bitcoin still sits more than 45% below its October 2025 record of over $126,000. Persistent spot Bitcoin ETF outflows have continued to weigh on prices, keeping the digital asset far from its highs even as it shrugs off the latest macro jolt.
Traders are now watching for the Federal Reserve's next policy meeting later this month. The jobs report has effectively removed any near-term chance of a rate cut, and if that hawkish stance holds, both equities and crypto could face further pressure. For now, the KOSPI and KOSDAQ remain on edge — Monday's circuit breaker was a stark reminder of how quickly sentiment can turn.
