South Korea’s KOSPI surged more than 5% on Tuesday as investors rushed back into semiconductor shares, reversing some of last week’s brutal sell-off.
The benchmark climbed 5.49% to 5,294.35 at 9:15 a.m. KST before easing to 5,245.72, a 4.52% gain, by 11:20 a.m. Samsung Electronics rose 5.11% and SK Hynix gained 6.78% at the later reading.
The rebound followed an 11.7% weekly plunge, capped by Friday’s 6.02% fall. A powerful Wall Street chip rally and lower oil prices helped restore confidence, while surging futures triggered a temporary curb on automated buying.
Why is KOSPI rising today
Monday’s Wall Street rally encouraged Korean investors to reconsider the sell-off amid continuing doubts about global AI investment. The Nasdaq Composite advanced 2.74%, the S&P 500 rose 2.35% and the Philadelphia Semiconductor Index jumped 6.85%.
Advanced Micro Devices surged 13.26%, Broadcom gained 8.78% and Micron Technology climbed 6.25%. Their recovery mattered in Seoul, whose chipmakers supply memory used across AI infrastructure.
Crude prices also retreated as hopes of diplomacy between Washington and Tehran reduced fears of further escalation.
Han Ji-young of Kiwoom Securities had expected Korean shares to recover after KOSPI 200 overnight futures rose more than 5%, according to Seoul Economic Daily.
The US semiconductor rebound reinforced that outlook, despite lingering concerns about inflation and technology valuations.
Samsung and SK Hynix stocks rebound as AI spending fears ease
Samsung and SK Hynix were among the biggest casualties of last week’s market panic. On Friday alone, Samsung dropped roughly 6.4%, while SK Hynix slumped 10.4%, as fears surrounding future US AI data-centre restrictions spread through chip shares.
Those concerns followed Democratic gains in the US midterm elections, which raised speculation that approvals for new computing facilities could become more difficult.
Tuesday’s gains suggest some investors now consider the earlier selling excessive. Both supply AI infrastructure, making earnings sensitive to how quickly technology companies build data centres.
Lee Kyung-min of Daishin Securities told MoneyToday that tougher permitting could delay when AI investments are made without necessarily reducing the total amount ultimately spent.
That distinction matters, as a postponed data centre might shift memory orders into later quarters, whereas cancelled projects could damage longer-term sales forecasts.
Still, delays would affect near-term earnings visibility. The market’s renewed optimism rests partly on the assumption that corporate AI spending plans remain intact rather than disappearing altogether.
Can KOSPI sustain its recovery after last week’s crash?
The speed of Tuesday’s advance underscored how unsettled Seoul’s market remains. At 9:06 a.m., the Korea Exchange activated a buy-side sidecar after KOSPI 200 futures climbed 5.76%.
The measure suspended programme buy orders for five minutes, not trading across the entire exchange. A similar curb followed on the KOSDAQ at 9:10 a.m.
Gains spread beyond semiconductor heavyweights. Hyundai Motor and battery maker LG Energy Solution advanced, while airlines benefited from the drop in fuel prices. Foreign investors and institutions initially bought shares, although continued demand is uncertain.
Yang Hyun-kyung of iM Securities told ChosunBiz that a durable rebound would require strength to spread beyond Samsung and SK Hynix. The analyst also pointed to upcoming US inflation data and CoreWeave earnings as tests of sentiment.
Hotter inflation could reinforce expectations of tighter Federal Reserve policy, while disappointing AI infrastructure results could revive valuation concerns.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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