“This is a massive rebound,” said a Seoul-based fund manager as the KOSPI index leapt 15% early Friday, clawing back losses after days of severe market disruptions. The rally followed two consecutive circuit breakers on Tuesday and Wednesday that froze trading, wiping out nearly 865 trillion won in value over just two sessions. By 10:30 a.m. local time, the KOSPI had soared to 6,440.14 from Thursday’s close of 5,593.56, sparking a buy-side sidecar that paused program trading for five minutes to cool the frenzy.
Tech giants powered the surge. SK Hynix rocketed almost 28%, while Samsung Electronics gained nearly 22%, fueled by renewed optimism around AI chip demand. This optimism was sparked by strong cloud earnings from Microsoft and Amazon, which beat expectations and reignited interest in AI-related hardware. Microsoft’s 16% jump and Amazon’s 9% after-hours gain sent ripples through markets, pushing the Nasdaq up 2.78% and the Philadelphia semiconductor index by more than 8%. Similar momentum hit Tokyo, where Advantest climbed almost 18% and SoftBank Group jumped over 15%, boosting Japan’s Nikkei 225 by 5.35%.
Despite Friday’s sharp rebound, the KOSPI remains about 31% below its June peak near 9,385.59, underscoring the scale of July’s meltdown the worst monthly loss in the index’s history, plunging over 33%. The recent turmoil forced an emergency government meeting as investors grappled with the fallout, but the AI chip rally has provided a much-needed spark. Market watchers will be closely watching if this bounce can sustain momentum or if volatility will return.
The broader tech-driven rally also relates to ongoing shifts in the semiconductor and AI sectors, echoing strong US tech earnings and AI demand seen across the Asia-Pacific region. For now, the surge shows how quickly market sentiment can swing when AI spending confidence revives, even after severe sell-offs.
This material is for informational purposes only and does not constitute financial advice.
