South Korea's Kospi hits record as AI drives tech rally
South Korea's Kospi index just hit a new record, with tech stocks jumping 2.3% on Tuesday. Big names like Samsung Electronics and SK Hynix led the charge, riding the wave of global excitement around AI, even with worries about the Iran conflict in the background.
Taiwan's market also broke records, thanks to strong gains from Taiwan Semiconductor.
Kospi up over 50% this year
Kospi has soared over 50% this year, putting South Korea close to overtaking the UK in total market value.
This comeback follows easing oil price fears that had been weighing on Korea's economy.
With momentum building, Goldman Sachs has raised its Kospi target and JPMorgan has raised its bull case Kospi target to 8,500.
Funds snap up Kospi shares
Even after these big gains, Samsung and SK Hynix are still valued lower than major US tech firms.
On Tuesday, foreign and local funds snapped up more Kospi shares while Korean retail investors sold off, a sign that investment trends might be shifting as global markets change.