Seoul stocks rebound over 2 pct on eased chip rout, Fed bets

Seoul's stock market staged a strong rebound on Friday, recovering over 2 percent to end a seven-day losing streak. The decline in the chip sector helped trigger the bounce-back, as investors reassessed the sector's prospects. The Korean won also enjoyed a boost against the U.S. dollar during the session. The Korea Composite Stock Price Index (KOSPI) finished the day up 113.83 points, or 2.05 percent, at 5,668.05 after peaking at 5,809.94 earlier.

Large-cap tech shares, particularly the nation's leading chip manufacturers, were among the biggest beneficiaries, having fallen more than 10 percent the previous trading day. Fed Chair Kevin Warsh's optimism about the U.S. economy and the potential for a rate hike this month helped restore confidence in riskier assets. His remarks about artificial intelligence (AI) as "probably the most consequential change to the U.S. and the global economy in my lifetime" further lifted investor sentiment.

Analyst Seo Sang-yong of Mirae Asset Securities noted that despite concerns about credit risks and funding burdens, Warsh's positive outlook on AI's structural growth was particularly encouraging.