Now Reading: Kospi Surges 3.6% as AI Rally Revives Korean Stocks
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Kospi Surges 3.6% as AI Rally Revives Korean Stocks
South Korea’s Kospi jumped 3.6% on Thursday, with NDTV Profit reporting a 3.75% rise, as technology shares rallied after softer US inflation reduced fears of an immediate Federal Reserve rate hike. Samsung…
The Story in Brief
South Korea’s Kospi jumped 3.6% on Thursday, with NDTV Profit reporting a 3.75% rise, as technology shares rallied after softer US inflation reduced fears of an immediate Federal Reserve rate hike. Samsung Electronics and SK Hynix each rose nearly 5% or more. The index has gained about 22% from its July 30 low, entering a technical bull market after a 22% fall in July.
The Hindu BusinessLine reports that renewed confidence in global AI spending, lower margin-related stress and curbs on leveraged ETFs helped steady trading. Yet the Kospi remains about 25% below its late-June peak, while foreign investors have withdrawn more than $100 billion this year. Analysts cited by the paper caution that the rally needs firmer AI demand and stable US rates.
The Indian Opinion
The easy story is that AI has permanently rescued Korean stocks, while the opposing claim is that the rebound is just a retail frenzy. Both miss the evidence. Leverage restrictions and cheaper valuations have helped, but heavy dependence on chip demand leaves the market exposed to weaker spending, Chinese competition and US rate shifts. The useful test is whether foreign investors keep buying after the next major AI earnings cycle.
Sources (2): ndtvprofit.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
