South Korean stocks continued to exhibit extreme volatility, closing almost 9 percent lower on Monday, driven by escalating geopolitical risks in the Middle East and concerns over a slowdown in the tech sector.
The benchmark KOSPI dived 669.01 points, or 8.95 percent, to close at 6,806.93, while the smaller KOSDAQ dropped 38.07 points, or 4.55 percent, to finish at 799.36.
After opening 0.85 percent lower, the KOSPI rallied to a high of 0.71 percent in early trading, only to reverse course about 30 minutes after the market opening.
The index broke below the 7,000-point mark, falling to as low as 6,783.43 at one point.
A sell-side sidecar was triggered in the KOSPI market in the morning session amid the rollercoaster volatility.
The sidecar is activated when the benchmark futures index fluctuates for at least one minute by 5 percent for KOSPI, leading to a temporary halt of program trading for five minutes.
A circuit breaker was issued on the KOSPI in the afternoon session as the index sustained a loss of over 8 percent for more than one minute, suspending the stock trading for 20 minutes.
The panic selling was stoked by renewed clashes between the United States and Iran, along with Iran's declaration to block the Strait of Hormuz, which severely dented global investor sentiment.
Despite SK hynix's NASDAQ ADR listing, tech giants, including Samsung Electronics, faced heavy selling pressure on concerns over a potential earnings peak-out in the tech sector.
Foreign and institutional investors were net sellers, dumping major semiconductor stocks, while retail investors continued to buy the dip.
Last week, the KOSPI exhibited a rollercoaster ride despite Samsung's record second-quarter earnings guidance that was offset by fears of earnings peaking out.
A sell-side sidecar and a circuit breaker were issued on Tuesday, with the KOSPI tumbling over 8 percent.
Reports of military friction between the United States and Iran triggered consecutive sell-side sidecars in both the KOSPI and KOSDAQ markets on Wednesday.
The KOSPI rebounded on Thursday as bargain hunters stepped in, before going up further on Friday thanks to Wall Street's steady tech outlook.
The South Korean won versus the U.S. dollar exchange rate finished its daytime session at 1,503.4 won per dollar as of 3:30 p.m. local time (0630 GMT) on Monday, up 2.0 won from the previous session's daytime close.
Market bellwether Samsung Electronics and memory chip giant SK hynix dipped 10.70 percent and 15.37 percent.
The country's top automaker Hyundai Motor slipped 2.95 percent, but the largest battery maker LG Energy Solution picked up 0.77 percent.
The No. 1 biopharmaceutical contract manufacturer Samsung Biologics rose 0.36 percent, but the leading aerospace and defense company Hanwha Aerospace retreated 3.21 percent.
The biggest shipbuilder HD Hyundai Heavy Industries decreased 3.27 percent, and the energy infrastructure leader Doosan Enerbility was down 6.27 percent.
S. Korean stocks continue extreme volatility to close 9 pct lower
