South Korea’s KOSPI Triggers Sell Circuit Breaker After 4% Drop

South Korea’s benchmark KOSPI triggered a sell-side circuit breaker after falling 4%, marking the market’s first such halt in nearly two months and highlighting a sharp risk-off move in Asian equities.

The decline came about one hour after the market opened Tuesday in South Korea. KOSPI 200 futures fell 51.20 points from the previous close to 955.02, a 5.08% drop.

The move activated a five-minute suspension of program sell orders in the securities market. South Korea’s sell-side circuit breaker is triggered when KOSPI 200 futures remain more than 5% below the previous close for at least one minute.

The broader KOSPI market had not triggered a circuit breaker since Aug. 20. The sell-side mechanism had last been activated Aug. 19.

The halt comes as the futures market registered a decline beyond the threshold used to temporarily slow automated selling. Trading resumes after the five-minute suspension, subject to the market’s normal rules.