The Korea Exchange has activated a buy-side circuit breaker on the KOSPI index, halting trading as the benchmark rallied sharply from recent lows.
The measure was triggered after the index surged 4.1% in a single session, marking another instance of extreme intraday volatility in South Korean equities.
This development follows a period of intense market turbulence, with the KOSPI plunging nearly 10% earlier in the month as aggressive profit-taking in technology shares accelerated a broader reversal across Asian equity markets. The exchange had previously triggered circuit breakers during that sell-off, highlighting the fragility of investor sentiment amid shifting global risk appetites.
The buy-side circuit breaker is designed to prevent excessive buying pressure from distorting prices, ensuring orderly trading conditions.
Its activation today suggests that the recent rebound has been swift and potentially unsustainable, raising questions about the durability of the recovery.
Traders will be watching closely for signs of stabilization in the coming sessions, particularly as the market digests the implications of this latest volatility spike.