Back
Goldman Sachs strategist sees South Korean stocks rebounding after Kospi’s 8.8% drop

Goldman Sachs strategist sees South Korean stocks rebounding after Kospi’s 8.8% drop

South Korea’s Kospi fell 8.3% to 8.8%, briefly triggering circuit breakers as semiconductor and other technology shares sold off amid positioning unwinds tied to shifting U.S. rate expectations.

Fact Check
The Bloomberg primary article confirms Goldman Sachs strategist Timothy Moe stated South Korean stocks will rebound after the Kospi's 8.8% intraday plunge that triggered circuit breakers on June 8, 2026. Cryptobriefing corroborates the 8.3% close, circuit breakers, and tech/semiconductor (Samsung, SK Hynix) selloff tied to US jobs data shifting Fed rate expectations — matching the claim's description of an 8.3%–8.8% range and positioning unwinds tied to US rate expectations. Odaily further corroborates the 8.8% intraday drop and Goldman's view, and a follow-up article shows the rebound materialized.
Summary

South Korean stocks may rebound after the Kospi fell between 8.3% and 8.8%, briefly triggering circuit breakers as Asian markets extended the previous week’s selloff. Goldman Sachs Asia-Pacific chief equity strategist Timothy Moe said the decline looked like a technical correction driven by forced unwinding of leveraged ETF positions and technology trades after an AI-led rally, while fundamentals and valuations remained strong. Lucerne Asset Management CIO Mark Williams similarly said the move appeared to be a washout of positioning and momentum trades after the U.S. nonfarm payrolls report shifted interest-rate expectations, rather than a reassessment of the long-term AI theme.

Terms & Concepts
  • circuit breaker: Temporary trading halt after sharp market moves.
  • leveraged ETF: Fund designed to amplify the daily moves of an underlying index or asset.
  • nonfarm payrolls report: U.S. monthly employment data that can influence interest-rate expectations and global markets.