{"id":65580,"date":"2026-07-28T23:38:16","date_gmt":"2026-07-29T03:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-korea-trading-halts-and-japan-earthquake-disruptions\/65580\/"},"modified":"2026-07-28T23:38:16","modified_gmt":"2026-07-29T03:38:16","slug":"global-markets-shaken-by-korea-trading-halts-and-japan-earthquake-disruptions","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-korea-trading-halts-and-japan-earthquake-disruptions\/65580\/","title":{"rendered":"Global Markets Shaken by Korea Trading Halts and Japan Earthquake Disruptions"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea\u2019s KOSDAQ and KOSPI markets triggered emergency circuit breakers<\/strong> following a massive sell-off in semiconductor stocks, with the <strong>KOSPI plunging 10.62%<\/strong> and <strong>KOSDAQ falling 8.10%<\/strong> in a single session.<\/li>\n<li><strong>Renesas Electronics (<a href=\"\/stock\/6723\">6723<\/a>) halted production at two major facilities<\/strong> in Japan&#39;s Kumamoto Prefecture after a <strong>7.1 magnitude earthquake<\/strong>, raising immediate concerns over global automotive and industrial chip supply chains.<\/li>\n<li><strong>Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) reported a 43% surge in half-year profit to $6.85 billion<\/strong>, fueled by &quot;extraordinary&quot; demand for copper and aluminum driven by the global <strong>AI data center boom<\/strong>.<\/li>\n<li><strong>Geopolitical tensions escalated in the Middle East<\/strong> as joint <strong>U.S.-Saudi airstrikes<\/strong> reportedly hit Popular Mobilization Forces (PMF) headquarters in Nineveh, Iraq, resulting in at least eight casualties.<\/li>\n<\/ul>\n<h2>Asian Markets Under Pressure<\/h2>\n<p>South Korean equity markets faced extreme volatility on Wednesday as the <strong>Korea Exchange (KRX)<\/strong> was forced to activate circuit breakers for both the <strong>KOSPI<\/strong> and <strong>KOSDAQ<\/strong> indexes. The 20-minute trading halts were triggered by a sharp decline in heavyweight semiconductor stocks, including Samsung Electronics and SK Hynix, amid broader fears of a global tech correction and regional instability. This marks the eighth time in 2024 that circuit breakers have been utilized in the Korean market, reflecting a year defined by high-frequency volatility.<\/p>\n<p>In Southeast Asia, <strong>Indonesia\u2019s equity benchmark<\/strong> slid to 6,047.675, its lowest level since mid-July. The decline comes as investors weigh the impact of the abrupt departure of the Bank Indonesia Governor and ongoing concerns regarding the nation&#39;s fiscal transparency. Despite the regional downturn, <strong>Fitch Ratings<\/strong> noted that <strong>Indian companies&#39; credit strength<\/strong> is expected to remain resilient, citing strong revenue growth that should offset persistent geopolitical and weather-related risks.<\/p>\n<h2>Semiconductor Supply Chain Disruptions<\/h2>\n<p><strong>Renesas Electronics (<a href=\"\/stock\/6723\">6723<\/a>)<\/strong> has begun a comprehensive review of its equipment and inventory following a powerful earthquake in Kumamoto. The company confirmed that operations at its <strong>Kawashiri and Nishiki factories<\/strong> remain suspended while engineers inspect cleanrooms for structural damage and equipment misalignment. <em>Analysts warn that even a brief halt in these specialized facilities can lead to weeks of supply chain &quot;whiplash&quot; for the global automotive sector.<\/em><\/p>\n<p>Simultaneously, <strong>Sony Semiconductor Solutions<\/strong> also paused operations at its Kumamoto Technology Center. While no significant injuries were reported, the dual shutdowns of Renesas and Sony facilities in the same region have reignited fears of a concentrated supply chain bottleneck. The companies are currently monitoring aftershocks before attempting to restart precision manufacturing lines.<\/p>\n<h2>AI Boom Drives Commodity and Export Growth<\/h2>\n<p>Despite the broader market turmoil, the artificial intelligence revolution continues to provide a massive tailwind for specific sectors. <strong>Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>)<\/strong> CEO Simon Trott highlighted that <strong>copper, aluminum, and lithium<\/strong> now account for nearly <strong>60% of the company&#39;s EBITDA<\/strong>, as the build-out of AI data centers requires vast quantities of industrial metals. The miner&#39;s copper earnings alone soared <strong>84%<\/strong> year-over-year, leading to a <strong>43% increase<\/strong> in its interim dividend.<\/p>\n<p>In Hong Kong, economists are upwardly revising GDP outlooks as <strong>exports surged 53.4% year-on-year<\/strong> in June. The record-breaking performance was driven almost entirely by the &quot;insatiable&quot; demand for electronic components and AI-related hardware. Experts from the <strong>South China Morning Post<\/strong> suggest that Hong Kong is benefiting from its role as a critical re-export hub for the global AI ecosystem, which currently remains far from saturation.<\/p>\n<h2>Corporate Moves and Analyst Actions<\/h2>\n<p>In the aerospace sector, <strong>JPMorgan<\/strong> raised its target price for <strong>Safran (<a href=\"\/stock\/SAF\">SAF<\/a>)<\/strong> to <strong>\u20ac430 from \u20ac400<\/strong> following an &quot;exceptional&quot; first half. The upgrade follows Safran&#39;s reported <strong>28% organic growth<\/strong> in adjusted EBIT, driven by a stellar performance in the civil engine aftermarket. The company also raised its full-year 2026 guidance, signaling confidence in the continued ramp-up of LEAP engine deliveries.<\/p>\n<p>Additionally, <strong>JPMorgan<\/strong> increased its price target for <strong>Itron Inc. (<a href=\"\/stock\/ITRI\">ITRI<\/a>)<\/strong> to <strong>$117 from $112<\/strong>, reflecting positive sentiment in the industrial technology space. These upward revisions stand in contrast to the broader cautious tone in Asian equity markets, suggesting a widening performance gap between high-growth tech\/aerospace firms and the general market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea\u2019s KOSDAQ and KOSPI markets triggered emergency circuit breakers following a massive sell-off in semiconductor stocks, with 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