KOSPI rockets 17% as Samsung, SK Hynix lead rebound
What's the story
South Korea's benchmark KOSPI index staged a remarkable recovery on Friday, soaring 17% to recover most of the losses incurred earlier this week. The rally was driven by strong gains in major chipmakers Samsung and SK Hynix, mirroring a similar recovery in US tech stocks. Trading was briefly halted amid the volatility that has characterized this year.
Market rebound
KOSPI had declined 17% over last 3 sessions
The KOSPI index rose by 17% to 6,549 points after a nearly 17% decline over the last three sessions.
This was one of its steepest weekly declines as fears of rising competition from Chinese memory chipmakers led to heavy selling in semiconductor stocks.
However, investor sentiment improved after Wall Street staged a strong recovery on Thursday, driven by technology shares.
AI impact
Microsoft, Amazon jump on strong earnings
Microsoft's better-than-expected earnings have renewed confidence in artificial intelligence spending and cloud demand.
The tech giant led the charge after reporting robust Azure cloud growth, easing fears over the returns on massive AI infrastructure investments.
Amazon also jumped over 9% in extended trading after posting second-quarter revenue that beat analysts' expectations, driven by continued strength in its cloud computing business.
Regional impact
Samsung, SK Hynix jump on strong quarterly results
The positive momentum from Wall Street spilled over to Asia, where Samsung shares jumped over 21% and SK Hynix soared over 26%. Both companies had posted strong quarterly results earlier this week.
Samsung reported a record quarterly profit on the back of its semiconductor business and expects a favorable supply-demand environment for memory chips to continue through at least 2027.
Financial performance
South Korea remains the world's best-performing equity market in 2026
SK Hynix also reported record revenue, although its quarterly profit fell short of elevated market expectations.
Despite the recent sell-off, South Korea remains the world's best-performing equity market in 2026.
The sharp correction has dragged the benchmark KOSPI nearly 40% below its June peak of 9,386.
Regulatory response
South Korean government to intervene amid market volatility?
In light of the recent market volatility, the South Korean government is considering measures to protect investors' wealth.
Finance Minister Koo Yun-cheol on Wednesday said that the government is reviewing market stabilization measures, including potential changes to regulations on single-stock leveraged ETFs.
Some analysts have suggested these products contribute to market volatility.