South Korean Stocks Rebound Sharply as KOSPI Jumps Over 5% After Previous Session Rout

KOSPI Opens Strong Following Sharp Decline​

South Korean equities rebounded sharply on Tuesday, March 10, with the benchmark Korea Composite Stock Price Index (KOSPI) surging at the opening bell after suffering a steep fall in the previous trading session.

The KOSPI jumped 271.34 points, or 5.17 percent, to 5,523.21 at market open. The strong recovery came a day after the index had plunged 5.96 percent, reflecting renewed investor buying interest after the earlier selloff.

Global Cues Support Market Recovery​

Overnight gains on Wall Street also supported market sentiment. The Dow Jones Industrial Average rose 0.5 percent, the Nasdaq Composite advanced 1.38 percent, and the S&P 500 gained 0.83 percent.

Investor sentiment improved after comments from US President Donald Trump, who indicated during an interview with CBS News that the war with Iran is “very complete.” The remarks contributed to a sharp drop in global crude oil prices, which helped ease market concerns.

Circuit Breakers Highlight Recent Market Volatility​

The previous session witnessed significant market turbulence. The Korea Exchange (KRX) activated a circuit breaker on the main exchange, suspending trading for 20 minutes amid extreme volatility.

This marked the first time circuit breakers were triggered twice within a single month since March 2020, when markets were hit by the COVID-19 pandemic.

Earlier last week, another circuit breaker was activated after the KOSPI plunged 12.06 percent, the largest one-day decline since September 12, 2001.

Shortly after Tuesday’s opening bell, program trading on the main exchange was also halted for five minutes. The Korea Exchange activates such measures when the KOSPI 200 futures index moves by 5 percent or more for at least one minute, aiming to stabilize trading conditions during sharp market swings.

Technology Stocks Lead the Rally​

Major technology companies led the market rebound in Seoul.

Samsung Electronics surged 9.91 percent, while SK Hynix soared 13.16 percent, driving the broader market higher.

Airline stocks also gained as falling crude oil prices improved cost outlooks for the sector. Korean Air climbed 8.93 percent, while Asiana Airlines rose 4.8 percent.

Mixed Performance Among Energy Companies​

Oil refiners showed mixed performance during early trading.

SK Innovation rose 1.27 percent, whereas S-Oil declined 7.71 percent.

Financial stocks also moved higher, with KB Financial advancing 4.14 percent and Shinhan Financial gaining 1.47 percent.

Korean Won Strengthens Against the Dollar​

In currency markets, the Korean won strengthened against the US dollar, trading at 1,471.5 won, up 24 won from the previous session.

The currency move reflected improving investor sentiment as markets stabilized after the previous day’s sharp decline.