(2nd LD) Seoul stocks rebound over 3 pct on eased AI spending woes

South Korean stocks saw a strong rebound on October 21, 2021, driven by easing concerns over artificial intelligence (AI) spending. The Korea Composite Stock Price Index (KOSPI) climbed 3.29 percent to close at 5,735.66 points, marking the first significant increase in two months. Semiconductor shares led the rally, as investor sentiment improved after Super Micro Computer reported better-than-expected earnings.

Samsung Electronics and SK hynix also benefited from the positive sentiment, with their shares rising by 5.67 percent and 5.81 percent, respectively. The Korean won strengthened against the U.S. dollar, reaching 1,325.2 per dollar. Bond yields, which move inversely to interest rates, experienced a slight decrease. Foreign investment in the local market increased as individuals and institutions sold shares, while foreigners made net purchases.

The rebound came after the previous day's sharp decline, which was fueled by renewed worries over massive AI infrastructure spending.