Kospi Plunges Over 2% as Rate Hike Fears Sweep Market

The Kospi plummeted over 2% on August 31 as concerns about a potential interest rate hike by the Federal Reserve sent shockwaves through the market.

The benchmark index opened at 6,613.58, down 2.58% from the previous session, and remained under pressure throughout the day, trading around 6,590 as of 9:10 a.m.

Semiconductor stocks led the losses, with Samsung Electronics falling over 3%, while SK Hynix and SK Square each dropped more than 3%. Other heavyweight stocks also traded lower, including Samsung Life Insurance, Samsung C&T, Hyundai Motor, and Celltrion.

The selloff extended beyond large caps to mid- and small-cap shares, with the machinery and equipment and construction sectors falling about 4%.