Seoul stocks rebound over 3% on eased AI spending woes
Korean stocks rebounded Wednesday, recovering from the previous session's steep losses as semiconductor shares rallied on easing concerns over artificial intelligence (AI) spending. The Korean won strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) gained 182.92 points, or 3.29 percent, to close at 5,735.66 after rising as high as 5,816.43. The sharp…
Korean stocks experienced a significant rebound on Wednesday, marking a strong recovery from the previous day's sharp decline. The rally was primarily driven by a positive shift in investor sentiment towards artificial intelligence (AI) spending concerns, which had previously weighed heavily on the market.
The Korea Composite Stock Price Index (KOSPI) surged 182.92 points, or 3.29 percent, to close at 5,735.66, after peaking at 5,816.43. This marked the first time in two months that the Korea Exchange (KRX) had activated a buy-side sidecar, temporarily halting program buying for five minutes in response to the rapid market movement.
The positive momentum was fueled by better-than-expected earnings from U.S. AI server manufacturer Super Micro Computer, which helped alleviate worries over AI-related investments. As a result, shares of major chip companies such as Samsung Electronics and SK hynix also gained, contributing to the overall market rebound.
Meanwhile, U.S. stock markets closed mixed, with the Dow Jones Industrial Average showing a modest gain of 1.02 percent. The mixed performance in the U.S. markets provided some balance to the strong performance of Korean stocks, as investors focused on the improved outlook for AI spending in the country.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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