South Korea’s stock market staged its sharpest reversal on record Friday, with the benchmark Kospi surging 14 percent, on track for its largest one-day jump. SK Hynix and Samsung Electronics similarly saw record rebounds, driven by foreign investor buying, short-covering and mechanical rebalancing of leveraged ETFs. The move came just days after Korean equities suffered one of their worst selloffs, amid concerns over stretched AI valuations. SK Group Chairman Chey Tae-won bolstered confidence by disclosing purchases of SK Hynix shares, while upbeat earnings from Microsoft, Amazon and Meta reinforced optimism about robust AI infrastructure spending. Analysts remain divided on whether the rebound signals a durable recovery, with some warning of risks from heavy leverage and persistent volatility in Korean equities.
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