India's equity markets remained closed on Friday on account of Muharram, while South Korea's financial markets witnessed sharp volatility as heavy selling in technology and semiconductor stocks triggered a temporary trading halt on the KOSPI.
The South Korean stock market activated a circuit breaker for the second time this week following heightened market volatility. Market participants attributed the decline to weakness in global technology stocks and profit booking by investors.
South Korea's benchmark KOSPI index fell more than 8 percent during Friday's trading session. A sharp increase in selling prompted the exchange to temporarily suspend trading for approximately 20 minutes under regulatory mechanisms.
According to analysts, the decline ranks among the market's largest weekly losses in recent months. Reduced investor risk appetite and weak global market cues added pressure on the market.
Shares of major semiconductor companies, a key component of South Korea's economy, recorded significant declines. Shares of Samsung Electronics fell approximately 8.02 percent, while global memory chipmaker SK Hynix declined about 8.94 percent.
As both companies carry substantial weight in the KOSPI index, their declines had a direct impact on the broader market.
Selling pressure also affected other large companies beyond the technology sector. Battery manufacturer LG Energy Solution declined approximately 5.11 percent. Automaker Hyundai Motor fell about 4.77 percent, while affiliate Kia Corp lost around 4.30 percent.
Steelmaker POSCO Holdings declined approximately 5.73 percent, and biotechnology company Samsung Biologics fell about 3.10 percent. Nearly all major market sectors traded in negative territory.
According to market data, foreign institutional investors sold shares worth approximately $1.7 billion during the opening hours of the trading session.
Market participants said global economic uncertainty, weakness in U.S. technology stocks, and investors' efforts to reduce risk exposure contributed to foreign capital outflows from the South Korean market, increasing selling pressure.
The decline in South Korean equities also followed weak signals from the U.S. stock market. Major U.S. technology stocks declined on Thursday, with Apple falling approximately 6.15 percent. Microsoft and Amazon each declined by more than 3 percent.
AI chipmaker Nvidia also fell approximately 1.59 percent. Meanwhile, memory chipmaker Micron Technology gained approximately 15.81 percent on the back of rising demand related to artificial intelligence, resulting in mixed signals across the U.S. semiconductor sector.
