KOSPI Index Surges Over 6%, Triggers Sidecar Buy Order Halt Again

TradingKey - The KOSPI index surged over 5%, as intense buying activity prompted the Korea Exchange to trigger its Sidecar mechanism again to suspend program buy orders.

In early trading on October 28, the Korea Composite Stock Price Index (KOSPI) soared over 5% after the opening bell, causing the KOSPI 200 futures index to spike sharply for more than 5 minutes. The Korea Exchange (KRX) once again triggered an emergency buy sidecar mechanism, suspending program buy orders for 5 minutes. This marks the second consecutive trading day that the KOSPI index triggered protective mechanisms due to a massive surge. As of press time, the KOSPI was up 6.34%, approaching the 6,000-point mark and standing at 5,996.09 points.

KOSPI index chart, Source: TradingView

The surge in the KOSPI was triggered by SK Hynix's record-breaking Q3 earnings report and an 80% operating margin, alongside its official announcement of returning 100 trillion won ($75 billion) to shareholders. These positive developments shook the market, sending its stock price soaring over 6% to break decisively above 1.4 million won.

In addition, the market generally expects the Federal Reserve (Fed) to maintain the policy interest rate in the 3.75%–4.00% range at the FOMC interest rate meeting. As the rise in 10-year US Treasury yields slowed, investor appetite for risk assets was bolstered, aiding a recovery in US tech stocks. The Nasdaq Composite Index rose more than 1%, and the Philadelphia Semiconductor Index (SOX) jumped nearly 4%, providing a strong external tailwind for the South Korean stock market today.

If the Federal Reserve announces later today that it will hold interest rates steady while offering a mild inflation and economic outlook, this major right-side bull market in South Korean equities, ignited by US stocks and semiconductor giants, is expected to secure longer-term capital momentum.