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Korea’s Kospi surges toward bull market after AI chip rebound

The Kospi gained as much as 4.8% on Thursday and is up about 22% from its July 30 low, helped by big moves in Samsung Electronics and SK Hynix.

Reported · Written up by our desk · Asia

South Korean shares rebounded sharply, with the Kospi climbing as much as 4.8% on Thursday and building on gains from a July 30 low of around 22%. The rally is putting the benchmark index on track to enter a technical bull market after last month’s historic rout, according to LiveMint Markets. Heavyweight memory chipmakers Samsung Electronics and SK Hynix led the move, with both stocks jumping more than 5% as sentiment returns to tech hardware. LiveMint Markets links the resurgence to a broader global rebound in the AI trade and continued evidence of major Big Tech spending on artificial intelligence. The renewed risk appetite follows last few months of forced liquidations tied to leveraged chipmaker bets, which triggered trading halts and wiped out billions of dollars in retail wealth. LiveMint Markets reports that recent government curbs on single-stock leveraged ETFs and signs investors are reducing margin debt have helped stabilize the market. Still, the outlook depends on whether AI demand expectations and interest rate expectations can steady. LiveMint Markets notes that a subdued US inflation report on Wednesday eased concerns about imminent Federal Reserve hikes, while investor focus also includes potential near-term shareholder return plans from Samsung and SK Hynix. The Kospi is up more than 60% this year, but remains about 24% below its late-June peak, and foreign investors have been net sellers, withdrawing more than $100 billion from Korean shares this year, though some funds have started to return.

Latest closeKospi 6,345.53 ▲0.7%

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