South Korean Stocks Rally as Tech Giants Rebound
The KOSPI index surged over two days led by Samsung Electronics and SK Hynix despite volatility from U.S. inflation data.
South Korean stocks experienced a significant recovery between November 10 and 11, led by semiconductor giants Samsung Electronics and SK Hynix. On Tuesday, the benchmark KOSPI index jumped between 4.6% and 5% as investors engaged in bargain hunting for AI-related stocks. This rally added approximately $73 billion in combined market value to the two chipmakers and triggered buy-side sidecars on the KOSPI and KOSDAQ markets, which briefly halted program buy orders.
Market sentiment on Tuesday was bolstered by gains in U.S. technology shares, the launch of new AI models by Anthropic, and declining crude oil prices following statements from U.S. President Donald Trump regarding military strikes against Iran.
On Wednesday, the KOSPI initially opened 0.56 percent lower due to concerns that U.S. consumer prices rose 0.3 percent in October, exceeding expectations. Investors feared this data would prompt the Federal Reserve System to pursue aggressive monetary tightening. However, the index reversed this decline to trade 0.68 percent higher by late morning, supported by further gains in technology and defense firms such as Korea Aerospace Industries and LIG Defense & Aerospace. While the tech sector rebounded, Hanjin KAL saw its shares plunge 14.23 percent. Investors remain focused on the upcoming initial public offering of Anthropic and future Nvidia earnings.
