KOSPI Triggers Five-Minute Trading Halt as Asian Tech Stocks Slide

South Korea’s benchmark KOSPI fell about 6% Tuesday, triggering a five-minute program-trading halt as a broader selloff in semiconductor and technology shares weakened risk sentiment across Asian markets and pressured early cryptocurrency trading.

The MSCI Asia-Pacific index excluding Japan fell 2.4% to a two-month low. Japan’s Nikkei 225 declined 2.6%, while Taiwan’s weighted index dropped 2%. Nasdaq futures also fell 0.77% as investors reduced exposure to technology and other risk-sensitive assets.

Semiconductor stocks bore the heaviest pressure after U.S. chip shares weakened overnight. Concerns about faster technological progress by China’s ChangXin Memory Technologies added to worries that intensifying competition could reduce profit margins across the global memory-chip industry.

Oil prices provided another source of pressure. Brent crude futures rose to $105.90 a barrel, near a two-week high, as markets focused on Middle East risks and uncertainty surrounding energy-related developments involving Russia and Ukraine. Higher energy costs are increasing inflation concerns and weighing on the appeal of high-valuation growth stocks.

Investors are now turning to the U.S. third-quarter earnings season, with major banks scheduled to report results as markets assess borrowing demand, financing costs and household spending.