Kospi Halted After 8% Plunge: KSh 323T ($2.5T) Nasdaq Rout Spreads to AsiaKospi Halted After 8% Plunge: KSh 323T ($2.5T) Nasdaq Rout Spreads to Asia
Key Highlights
- South Korea halted trading for 20 minutes on Friday after its main index fell more than 8% in a global tech sell-off.
- The Nasdaq lost 5.5% overnight, erasing a record KSh 323T ($2.5T) of market value in a single session.
- African investors now watch for foreign outflows from frontier markets if the sell-off carries into European and US trading.
South Korea's Kospi index fell more than 8% on Friday 6 November, triggering a 20-minute circuit breaker, after a tech sell-off on Wall Street wiped about KSh 323T ($2.5T) off US market value in one session.
The shock matters beyond Seoul and New York because global risk-off swings of this size tend to pull money out of smaller markets. Kenya and other African economies depend on foreign investors for Eurobond demand, equity flows and offshore holdings of local debt, so a deeper rout could raise borrowing costs and weaken currencies.
What happened overnight
The Nasdaq Composite dropped 5.5% on Thursday on worries about stricter AI rules, according to market reports on the session. Chipmaker Nvidia fell 9.26% in the same session, giving up its 2026 gains, and Tesla fell about 10.8%. The Nasdaq exchange operates the market where most of the affected shares trade.
In Asia on Friday, the Korea Exchange saw the Kospi plunge more than 8%, which stopped trading for 20 minutes under its circuit-breaker rules. The Kospi had already fallen nearly 4% on Thursday after Democratic wins in the US midterm elections raised concerns about curbs on AI data centres.
Why African markets are exposed
Mwenendo earlier reported on how a Big Tech sell-off hit gold and African exporters at the end of October, when gold fell to a 2026 low. Friday's moves extend that pressure, and commodity exporters such as Ghana and Tanzania face weaker earnings if gold stays soft.
For Kenya, the main channels are foreign flows at the Nairobi Securities Exchange, demand for Eurobonds and the cost of rolling over dollar debt. There is no evidence yet of a sell-off on African exchanges; the risk is that it spreads if European and US trading opens weaker.
Signals for investors in Nairobi
As Mwenendo earlier reported, markets were already cautious before the midterms, with tech shares attempting a rebound after a correction. Investors will now look at whether the Nasdaq stabilises, whether Asian markets recover on Monday, and whether oil and the dollar move further.
Mwenendo will track the NSE's reaction as it opens.
In Summary
- Who was affected?
- Investors in US and Asian tech shares, including Nvidia and Tesla, and South Korea's Kospi.
- What happened?
- The Kospi fell more than 8% and trading halted for 20 minutes after the Nasdaq fell 5.5%.
- When did it happen?
- The Nasdaq fell on Thursday 5 November; the Kospi halt came on Friday 6 November 2026.
- Where did it start?
- On Wall Street, spreading to South Korea and Asian markets.
- Why did shares fall?
- Fears of tighter AI regulation and AI data centre curbs after the US midterms.
- How could Africa be affected?
- Through foreign outflows, Eurobond demand and gold prices, though no African sell-off is reported yet.