South Korean market rebounds over 2% as chip slump eases and Fed optimism lifts risk appetite
Seoul's KOSPI jumped more than 2% on Friday, ending a week-long decline as chip losses eased and Fed Chair Kevin Warsh's upbeat remarks boosted risk appetite.
Seoul’s stock market rebounded sharply on Friday, with the KOSPI climbing 113.83 points (2.05%) to close at 5,668.05, snapping a seven-day losing streak. The surge followed a sharp decline in chip shares the previous session, prompting investors to hunt bargains in large-cap technology firms. Foreign buyers netted 343.5 billion won of equities, while retail and institutional investors offloaded a combined 1.17 trillion won.
The rally was fueled by Federal Reserve Chair Kevin Warsh’s optimistic remarks on the U.S. economy and artificial intelligence during the IMF-World Bank meetings in Bangkok, which revived appetite for risk assets. Nvidia’s Jensen Huang also voiced confidence in partner CoreWeave, despite its recent bond-yield spike. Leading Korean companies—including Samsung Electronics (+2.62%), SK hynix (+0.79%), Hyundai Motor (+5.58%), Hanwha Aerospace (+7.77%) and Celltrion (+6.53%)—ended the day higher, while the won strengthened to 1,331.4 per dollar.
Why it matters
The move shows how U.S. Fed signals and AI optimism can quickly reverse Korean market losses, affecting investors worldwide.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 8 The market recorded a third straight day of losses.
- Oct 12 The dollar stayed close to its 18-month high while oil prices swung amid intensified Houthi attacks and anticipation of the US CPI report.
- Oct 13 South Korean equities fell over 3% as Asian markets slipped, mirroring a 2.7% drop in a US semiconductor index and fading AI optimism.
- Oct 13 The decline continued a multi‑day slide in the index.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 US stocks fell sharply Wednesday, with the S&P 500 down 1.1% and Nasdaq off 1.9%, their worst one-day drops since July, after hotter-than-expected CPI and a retreat in AI-related shares.
- Oct 15 Peso slipped to 63.06 per dollar.
- Oct 15 KOSPI dropped over 7% and triggered a 20‑minute circuit‑breaker halt and sell‑side sidecar activation.
- Oct 16 CPI data released on Wednesday showed September inflation at 3.7% year‑over‑year, above the 3.6% forecast.
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