Asian markets pause Kospi after 8% drop amid AI concerns

Trading on South Korea’s Kospi index was temporarily halted on Tuesday morning after the benchmark slid 8%, one of the sharpest intraday declines recorded in recent years. The abrupt drop triggered the Korea Exchange’s market‑wide circuit‑breaker mechanism, which automatically pauses trading when a single‑day move exceeds a predefined threshold.

The pause, lasting the standard 30‑minute interval, was intended to curb volatility and give market participants time to assess the situation. The decline unfolded amid a broader sell‑off in Asian equities, where concerns over global growth and currency fluctuations pressured regional markets. Authorities indicated that trading would resume once the halt period ended, and they would continue to monitor conditions for any further interventions.