KOSPI rallies over 2% as investors look past US tech rout

The KOSPI stock index experienced a notable 2.24% increase on Monday, climbing to 5,859.08 points. This surge was driven by institutional buying, which helped the market rebound from early losses and offset lingering doubts about the profitability of artificial intelligence investments.

At the start of trading, the KOSPI had opened 1.62% lower before reversing course as institutional investors increased their share purchases. Institutional investors collectively bought a net 1.36 trillion won ($1.01 billion) of shares, while foreign and retail investors netted out 43.09 billion won and 1.41 trillion won, respectively.

Among the notable gains, SK hynix rose 3.81% to close at 1,472,000 won, and Samsung Electronics surged 1.78% to 229,000 won. Additionally, SK Square, which announced plans to return a minimum of 4.3 trillion won to shareholders from over 6.2 trillion won expected from SK hynix's cash dividends, saw a 5.91% increase, closing at 950,000 won.

This positive momentum in the KOSPI occurred despite a sharp decline in U.S. semiconductor shares on Friday, where Intel's stock dropped by 28% and the Philadelphia Semiconductor Index fell 7.2%. Lee Kyoung-min, an analyst at Daishin Securities, noted that the market's reaction was largely positive, despite the recent setbacks in the U.S. tech sector.