Kospi surges as much as 17.9% as SK Hynix, Samsung rebound
What's driving it: strong U.S. tech earnings, SK Group buying in SK Hynix and new ETF rules fueled short-covering and bargain hunting.
South Korean stocks staged a record rebound Friday, with the Kospi jumping as much as 17.9% after a steep monthlong sell-off tied to fears about inflated AI valuations. Chipmakers led the rally: SK Hynix climbed about 30% and Samsung Electronics rose nearly 27%, recovering part of the losses that had hammered Seoul's market in recent weeks. Investors took fresh cues from strong earnings at Microsoft, Amazon and Meta, which revived confidence in AI infrastructure spending. The move also got support after SK Group Chairman Chey Tae-won bought roughly $3 million of SK Hynix shares, a signal investors read as confidence in the company. Analysts also pointed to short-covering, foreign buying and new cash-deposit requirements for leveraged ETF investors as factors that amplified the surge.