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South Korean stocks rise 22% in 10 days, entering technical bull market; is the AI chip rally making a strong comeback?
South Korea's benchmark KOSPI index rose 3.6% on Thursday, marking a cumulative rebound of approximately 22% from its July 30 low and officially entering technical bull market territory. Samsung Electronics and SK Hynix were the core drivers of this rebound, with both heavyweight chip stocks gaining nearly or more than 5% in a single day.
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Shares of AI and semiconductor-related companies were bought up, pushing the index back into the 68,000-yen range for the first time in a month.
The Nikkei Stock Average continued its sharp rise, closing up 784.53 yen at 68,308.59 yen (estimated trading volume: 2.4 billion shares). On a closing basis, the index recovered to the 68,000 yen level for the first time in about a month since July 15. Following the buying momentum centered on technology stocks in the U.S. market the previous day, investors in Tokyo also focused on semiconductor and AI-related stocks. The Nikkei started the session above the psychological threshold of 68,000 yen and extended gains to a high of 68,799.71 yen. Subsequently, profit-taking and sell orders from those waiting for a pullback emerged amid the consecutive daily rises.
After a month-long hiatus, is the South Korean stock market poised to return to a bull run?
① Driven by a global rebound in AI-related trading, South Korea's KOSPI index has rallied approximately 23% from its July 30 low, positioning it for a potential technical bull market; ② Fundstrat notes that South Korean memory chip stocks have outperformed broader technology shares for the first time since June, as the recovery in the memory industry drives capital back into the tech sector; ③ Institutions warn that if U.S. Treasury yields and the U.S. dollar strengthen again, the current rally could face headwinds later this month.