Seoul: South Korean stocks experienced a sharp decline of over 8 percent late Monday morning after the Korea Exchange (KRX) lifted a 20-minute trading suspension, prompted by extreme market volatility following recent U.S.-Israeli strikes on Iran. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 450.57 points, or 8.07 percent, reaching 5,134.3 by 11:02 a.m.
According to Yonhap News Agency, the KRX activated a circuit breaker at 10:31 a.m. when the KOSPI plummeted 452.8 points, or 8.11 percent, to 5,132.07. This led to a temporary suspension of trading for 20 minutes. A circuit breaker is employed when the index remains 8 percent below the previous session's level for one minute.
The KRX had previously issued a circuit breaker last Wednesday when the main index fell by 12.06 percent, marking the steepest one-day decline since the aftermath of the Sept. 11, 2001, terrorist attacks in the United States. Earlier in the day, the main bourse operator also activated a sell-side sidecar, pausing sales for five minutes after the KOSPI 200 Futures index shifted by 5 percent or more for at least one minute.
Investors maintained close scrutiny of global energy price fluctuations, as the U.S. benchmark West Texas Intermediate (WTI) crude oil surpassed US$100 per barrel on Sunday. The market was also influenced by weaker-than-expected U.S. employment data released last week, with nonfarm payrolls decreasing by 92,000 in February, falling short of market expectations for a gain of 59,000.
Additionally, the Korean won was trading at 1,496.3 won against the U.S. dollar, a decrease of 19.9 won from the prior session.