South Korea’s stock market extends losses to 11% just minutes after triggering a circuit breaker

Korea Exchange activates circuit breakers as KOSPI crashes 8% in opening trade

• KOSPI trading halted after 8% drop, first since August 2024
• Asia stocks fall as US-Iran conflict raises oil supply fears
• Brent crude up 12% this week, hitting $81.40 a barrel

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The Korea Exchange said on March 4 it activated circuit breakers on the KOSPI, halting trading for 20 minutes, after the benchmark stock index fell 8%. Moreover, South Korea’s stock market extended losses to 11% just minutes after triggering a circuit breaker.

It was the first time since August 2024 circuit breakers were activated on the index.

Indices across Asia fell sharply for the third session in a row as the US-Iran military conflict raised concerns over disruption in oil supplies, which could lead to higher energy costs.

The KOSPI has lost 14% in the last three sessions.

Japan's Nikkei slid 2.5% in a third straight session of losses. Japan and South Korea are major energy importers.

Benchmark Brent crude oil futures are up more than 12% for the week at $81.40 a barrel, though they came off highs after US President Donald Trump ordered an insurance guarantee on Gulf shipping and said the navy may escort oil tankers through the Strait of Hormuz if necessary.

US and Israeli forces have pounded Iran for four days and Iranian drones and missiles have struck Gulf oil refineries and also U.S. embassies in Saudi Arabia and Kuwait.

"It does look like conflict is going to go a little bit longer than what people thought initially. And there's been escalation, because the war is now broadening out to include allies of the U.S.," Damien Boey, portfolio strategist at Wilson Asset Management in Sydney told Reuters.

"Oil infrastructure seems to be under attack ... so people are having to think about what is the duration of all of that."

Gold fell about 4.5% overnight and the Aussie dollar slid 0.8% as traders were cashing out of winning bets to cover losses elsewhere in a volatile week. Early in the Asia session gold steadied at $5,128 an ounce, while U.S. and European futures also tried to stabilise, with S&P 500 futures

flat and European futures up 0.8%.

On Wall Street, indexes pared heavier losses but the S&P 500 closed 0.8% lower on fear over potentially prolonged higher oil prices.