Circuit

• South Korea’s KOSPI and KOSDAQ indices dropped approximately 8% for the second consecutive day, triggering Level 1 circuit breakers due to extreme volatility. • The decline has sparked panic among investors, as both indices remain in a fragile state and are heavily dependent on the performance of the tech sector. • Market recovery is currently contingent on upcoming Samsung earnings reports and a critical interest rate decision from the US Federal Reserve.

• Asia-Pacific markets experienced a stark divide on July 29, with South Korea's KOSPI plunging over 5% and triggering a circuit breaker. • The sell-off was driven by a crash in memory and chip equipment stocks, while Taiwan's market dropped below the 40,500 level. • Conversely, several regional markets hit record highs, including Singapore's Straits Times Index at 5,640 points and New Zealand's NZX 50 at 13,991 points.

• On July 28, Asian stock markets suffered a "Black Tuesday" crash, with South Korea's KOSPI plunging over 10% and triggering a circuit breaker. • Major semiconductor firms Samsung Electronics and SK Hynix saw shares tumble more than 12%, following a 2.23% drop in the U.S. Philadelphia Semiconductor Index. • Market anxiety was further intensified by the South Korean Financial Services Commission's plan to limit retail investor purchases of single-stock leveraged ETFs.

• South Korea's benchmark KOSPI index crashed nearly 11% on Tuesday, marking its worst single-day session in almost five months. • The decline was driven by a global rout in semiconductor stocks, which severely impacted industry giants Samsung Electronics and SK Hynix. • Market volatility was further exacerbated by the stock market debut of China's CXMT, heightening investor fears regarding increased competition from Chinese chipmakers.

• The KOSPI index experienced its 8th circuit breaker as a sharp selloff in semiconductor stocks and significant foreign outflows triggered a deep market decline. • While Japan and Taiwan also saw losses, Korea's steeper drop highlights the risks of high index concentration and the impact of regional shocks. • Market pressure is compounded by China's CXMT, which threatens conventional DRAM prices despite lagging behind Korea in advanced high-bandwidth memory technology.

• South Korea's KOSPI index plummeted 8.02% to 6,213.51 on the 28th, triggering a Level 1 circuit breaker. • This event marks the eighth time a circuit breaker has been activated this year, resulting in a mandatory 20-minute suspension of all trading. • The sharp decline highlights significant market volatility and instability within the Korean stock market.

• The Philadelphia Semiconductor Index surged 5.21% on Tuesday, sparking a widespread rally across Asian equity markets on Wednesday. • South Korea's KOSPI soared over 6%, triggering a market circuit breaker, while Japan's Nikkei rebounded by more than 1,000 points. • The surge was driven by strong export data from Taiwan and South Korea, which bolstered investor confidence in a recovery for semiconductor demand.

• TSMC reported Q2 2026 results on July 14, exceeding expectations for both revenue and earnings per share (EPS). • The company provided a Q3 revenue guide that surpassed consensus estimates and announced an increase in its 2026 capital expenditure. • To maintain competitiveness, a proposed strategy for Europe focuses on building a full AI stack, including data centers, frontier models, and independent energy.

• South Korea's Kospi index crashed through the 6,000 level during the third week of July (13th-16th), experiencing extreme volatility. • The market saw circuit breakers triggered every single trading day, driven by investor fears of a "peak-out" in the semiconductor sector. • Major industry players including Samsung Electronics, SK Hynix, and TSMC were impacted as concerns grew over the sustainability of the AI cycle.

• South Korea is experiencing an AI-driven stock boom, with leveraged single-stock ETFs tied to Samsung Electronics and SK Hynix causing extreme market volatility. • A Hong Kong-listed twice-levered SK Hynix ETF has surged over 20-fold this year to reach $7.78 billion, while some single-name leveraged ETFs trade at four times the volume of their underlying stocks. • This trend is significant because daily rebalancing creates a procyclical effect, forcing additional buying during price rises and aggressive selling during declines.