BANGKOK, Thailand – South Korea’s benchmark Kospi index surged more than 16% in early Friday trading as investors returned to semiconductor stocks following several days of steep declines driven by concerns over artificial intelligence valuations and competition in the chip industry.
The Kospi jumped 16.8% to 6,531.71, recovering much of the ground lost earlier in the week. The rally followed gains on Wall Street, where technology stocks rebounded after recent volatility.
South Korea’s largest chipmakers led the advance.
Samsung Electronics climbed 22.5%, while memory chipmaker SK Hynix soared 27.7%, reflecting renewed investor confidence in AI-related technology companies.
Chip Stocks Stage a Strong Recovery
The South Korean market has experienced sharp swings this week as investors reassessed valuations across the artificial intelligence sector.
The Kospi lost more than 16% over Tuesday and Wednesday during a broad technology sell-off fueled by concerns about a potential AI investment bubble and increasing competition from Chinese chipmakers.
The index fell another 1.2% on Thursday, slipping below the 5,600 level before rebounding sharply on Friday.
The latest rally suggests investors returned to semiconductor stocks after several sessions of heavy selling. The source material did not indicate whether the rebound fully erased the week’s earlier losses.
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Regional Markets Move Higher
Other Asian markets also advanced.
Japan’s Nikkei 225 rose 5.2% to 65,072.42 in early trading.
SoftBank Group, a major investor in OpenAI, gained 15.1%.
Semiconductor equipment maker Tokyo Electron climbed 10.1%, adding to the region’s technology-led rally.
The gains reflected improving investor sentiment after a stronger performance on Wall Street.
Wall Street Rebound Boosts Confidence
U.S. markets closed higher Thursday, helping lift sentiment before Asian trading began.
The S&P 500 gained 1.7% to 7,437.63.
The Dow Jones Industrial Average rose 1.2% to 52,208.06.
The technology-heavy Nasdaq Composite outperformed, climbing 2.8% to 25,122.18.
According to the supplied material, U.S. stock futures also edged higher early Friday, pointing to continued optimism.
Oil Prices Edge Lower
While equity markets rallied, oil prices moved lower.
Brent crude, the international benchmark, fell 1.1% to $85.92 a barrel in early trading.
The decline came as investors continued monitoring geopolitical developments alongside improving sentiment in global equity markets.
This report is based on reporting by The Associated Press.
