Kospi Soars Over 15% as Chip Stocks Surge Back from AI Bubble Fears
South Korea's stock market saw a massive rebound on Friday, with the Kospi index surging more than 15 per cent. This sharp recovery was led by domestic technology giants and memory chipmakers following significant downturns earlier in the week.Massive Rebound Fuels South Korean Tech Rally
The Kospi rose a remarkable 15.3 per cent in early Asian trading, reaching 6,447.10. The rally mirrored positive trends seen on Wall Street. Leading the surge were domestic technology heavyweights. Samsung Electronics shares surged an impressive 21.5 per cent. Memory chipmaker SK Hynix also experienced explosive gains, soaring 25.6 per cent.The tech sector in Korea had faced intense scrutiny earlier this week. The Kospi index had plummeted over 16 per cent on Tuesday and Wednesday. These sharp declines were attributed to concerns surrounding a potential AI bubble and rising competition from rivals in China within the chipmaking industry.
Global Markets Mirroring Tech-Driven Gains
The surge was not confined to South Korea alone. Tokyo's Nikkei 225 also climbed by 5 per cent during early Friday trading. Multinational investment holding company and OpenAI investor SoftBank Group saw a strong jump, rising 14.7 per cent. Chip equipment maker Tokyo Electron added 9.3 per cent in the Asian session.Meanwhile, US market performance provided a backdrop of strength. On Thursday, Wall Street's benchmark S&P 500 finished up 1.7 per cent at 7,437.63. The Dow Jones Industrial Average climbed 1.2 per cent to 52,208.06. The technology-heavy Nasdaq composite rose 2.8 per cent reaching 25,122.18.
Geopolitical Tensions Elevate Oil Prices
International oil prices traded higher amidst heightened geopolitical tensions between the US and Iran. Brent crude, the international standard, registered a gain of 0.3 per cent to reach USD 87.14 per barrel. This contrasts sharply with its price point around USD 72 a barrel before the start of the Iran war in late February.The rise in oil prices was also influenced by the status of the Strait of Hormuz, which is considered a key waterway for global oil transport and remains largely closed. This combination of market recovery and geopolitical risk factored into the commodities trading.
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