South Korean, Taiwan Stocks Plunge and Trigger Circuit Breakers as AI Heavyweights Lead Declines

On March 4, conflict in the Middle East drove up oil prices and inflation concerns, sending Taiwan’s benchmark stock index down 1,494 points to close at 32,828. TSMC ended at NT$1,865, falling below NT$1,900. The Korea Exchange halted trading for 20 minutes after the KOSPI and KOSDAQ dropped more than 8%, highlighting valuation and leverage risks following heavy concentration in AI-related index heavyweights.

A fresh wave of selling on June 8 pushed Taiwan’s market down as much as 2,694 points intraday to 42,376, the largest intraday point decline on record, wiping more than NT$5 trillion from its market value in one day. TSMC opened down NT$135 at NT$2,230 and closed at NT$2,295. The Korea Exchange imposed another 20-minute circuit breaker when the KOSPI fell 8.4%, while Samsung Electronics and SK hynix closed down 10.18% and 7.68%, respectively.