Seoul’s main indexes saw volatility controls activated after Kospi 200 and Kosdaq 150 futures jumped 5% and 6%, respectively, amid a tech-led rally.
The Korea Exchange halted program trading on both the Kospi and Kosdaq after futures contracts surged, triggering sidecar mechanisms. Kospi 200 futures rose 5%, while Kosdaq 150 futures climbed 6%, prompting five-minute trading pauses as volatility controls strained under concentrated buying pressure.
The rally followed softer-than-expected US inflation data, which fueled overnight gains in US technology stocks. SK Hynix led the advance, jumping nearly 12%, reflecting its heavy weighting in benchmark indexes and close ties to the US tech sector. The Kospi index rose 6.9% as of early Wednesday trading.
The dual sidecar activation underscored the intensity of the rally, marking an unusual event rather than a routine volatility measure. Market participants attributed the surge to algorithmic trading flows amplifying the risk-on sentiment from Wall Street.