- The Kospi has rebounded more than 20% from its recent low on recovering AI investment sentiment, putting it on the verge of entering a technical bull market.
- Samsung Electronics and SK Hynix rose more than 5% intraday to lead the index higher, while improving semiconductor investment sentiment and the government's tighter regulation of leveraged exchange-traded funds (ETFs) helped stabilize the market.
- US July consumer price index (CPI) data, easing concern over additional rate hikes by the Federal Reserve (Fed), expectations for shareholder return policy announcements, renewed inflows from foreign investors, and the outlook for memory semiconductor demand are providing a supportive backdrop for equities.
Forecast Trend Report by Period
South Korean stocks rebounded sharply on recovering artificial-intelligence sentiment, leaving the Kospi on the verge of entering a technical bull market.
On Aug. 13, the Kospi climbed as much as 4.8% intraday, extending its rebound from the July 30 low to about 22%. Major indexes are typically considered to have entered a technical bull market after rising more than 20% from a recent trough.
Bloomberg said Samsung Electronics Co. and SK Hynix Inc. led the advance. Both stocks rose more than 5% during the session, lifting the broader index.
Investors say recent earnings from global big tech companies reaffirmed plans to keep expanding AI spending, helping improve sentiment toward semiconductor shares. The South Korean government's tighter regulation of single-stock leveraged exchange-traded funds, along with a decline in margin trading, also helped stabilize the market.
