Weaker US jobs data sparks surge in Asian chip stocks, with Kosdaq halting trading amid aggressive buying pressure.
South Korea’s Kosdaq triggered a circuit breaker Monday as tech stocks surged, driven by traders scaling back Federal Reserve rate hike expectations after a soft US payrolls report. The Kospi climbed 0.8%, or roughly 50 points, while Japanese chip shares also advanced, though gains were tempered by Middle East tensions.
The rally follows seven weeks of declines on the Kospi, with investors positioning for a sharp reversal on dovish Fed signals. Korean tech stocks, particularly chipmakers, benefited from the repricing, while Japan’s Nikkei faced headwinds from oil price sensitivity tied to geopolitical risks in the Gulf.
Market sentiment remains tied to Fed policy shifts, but escalating Middle East conflicts could cap further upside, especially for Japan’s export-heavy economy. Korean equities, however, are more influenced by domestic AI and semiconductor cycles than oil volatility.