What triggered the KOSPI 200 futures halt?

A sharp selloff of about 5% on Monday, February 02, hit circuit-breaker thresholds, prompting a temporary halt in KOSPI 200 futures. The halt aimed to restore order as liquidity thinned and spreads widened. It also signaled elevated short-term risk for cash equities and ETFs tied to Korea.

Why are hedging costs in Korea at records now?

Demand for downside protection surged as volatility rose in chips and exporters. Traders bought puts and dynamic hedges, lifting costs to record levels. This suggests larger intraday swings for ^KS11, especially when earnings guideposts or policy headlines are unclear. High hedging costs often persist until visibility improves.

How should India-based investors approach the kospi index today?

Keep sizes small, use staggered entries, and set stop losses. Track KOSPI 200 futures basis, options skew, and memory pricing. Align entries with support levels rather than chasing bounces. If volatility eases and flows stabilize, increase exposure gradually. If spreads widen again, reduce risk and reassess setups.

Which stocks matter most for direction now?

Chips remain the swing factor. Samsung Electronics and SK Hynix drive the earnings pulse via memory pricing, AI server demand, and capex plans. Their guidance can pull sector ETFs and the broader index. Banks and autos help confirm breadth, but semis often set the near-term tone for Korea.

Global Market Insights

^KS11 Today, February 04: Futures Halt, Hedging Costs Hit Record

ByHuzaifa Zahoor February 4, 2026

Indian investors woke up to a volatile kospi index on February 04. After Monday’s 5% slide triggered a temporary halt in KOSPI 200 futures, South Korea stocks whipsawed as chips tried to rebound. Traders are now paying record prices to hedge Korea risk, pointing to elevated swings ahead. We see a tech-led bounce forming, but positioning remains fragile. For India-based portfolios, the kospi index moves matter because memory pricing, AI demand, and policy headlines often spill over into global tech sentiment and risk appetite.