South Korea’s benchmark Kospi index crashed nearly 10% on Tuesday, triggering a 20-minute trading halt as a massive sell-off engulfed the technology sector.
The sharp decline extended the index's drop from recent record highs, marking a severe reversal for a market heavily weighted toward artificial intelligence and semiconductor plays.
The turmoil in Seoul rippled across Asia, with Indian and other regional equities turning weak as investors booked profits from the recent rally.
Concerns over the sustainability of the AI-driven bull market dampened overall sentiment, prompting domestic investors to adopt a cautious stance.
The weakness in Asian trading also weighed on US futures, signaling that the repricing risk was not confined to one jurisdiction.
This episode highlights the fragility of concentrated tech rallies when profit-taking accelerates.