South Korea's Kospi index triggered a market-wide circuit breaker for the second consecutive time on Wednesday, as a selloff in chip stocks deepened. The index hit an intraday low of 5,173.33 after opening more than 1% higher. Meanwhile, Bitcoin rose above $64,000, climbing 1% as traders sought alternative assets.
Chip stocks lead the rout
The selloff was particularly severe in semiconductor names, which dragged the broader market lower. The Kospi opened with gains but quickly reversed as selling pressure mounted, especially in the tech-heavy sectors that have been under strain this month.
Second straight circuit breaker
This marks the second consecutive trading session where the Kospi's decline triggered a market-wide halt. The circuit breaker mechanism is designed to pause trading for 20 minutes when the index falls more than 8% from the previous close. The repeated triggers underscore the extreme volatility gripping Seoul's exchange.
Bitcoin's move
Bitcoin climbed above $64,000, a 1% gain on the day. The move comes as traditional markets in Asia show signs of stress, though the cryptocurrency's rally was modest compared to the scale of the equity rout. No single catalyst was immediately clear.
Traders are watching for any further circuit breaker triggers as the session continues. The Kospi's back-to-back halts raise questions about how much more downside the market can absorb before finding a floor. For now, all eyes are on the afternoon trading resumption.
