Seoul stocks rebound over 2 pct on bargain hunting

Seoul stocks surged over 2% on Monday, finishing more than 2.24% higher at 5,859.08 points, as bargain hunters flocked to tech giants despite AI spending concerns. The Korean won weakened against the US dollar during the session. The Korea Composite Stock Price Index (KOSPI) had plummeted by over 3% on Friday, but recovered significantly from that drop.

Lee Kyoung-min, an analyst from Daishin Securities, attributed the rebound to investors reevaluating disappointing quarterly earnings from Intel and shifting focus towards the strong fundamentals of the local semiconductor industry. Lee suggested the KOSPI is trading at a historic discount, implying potential further gains based on robust earnings.

October exports from South Korea experienced a substantial 90% increase compared to the same period last year, driven by robust global demand for chips. This surge in chip exports saw a staggering 259% increase in outbound shipments year-over-year. Intel's shares suffered a steep decline of over 28% on Wall Street on Friday, following the company's announcement of weaker-than-expected sales guidance for the fourth quarter, citing a slowdown in the PC market.