South Korea’s equity market staged a sharp rebound on Monday, with the benchmark KOSPI climbing over 4% to above 5,290, as investors returned to risk assets following last week’s tech-led sell-off and took cues from a strong regional rally led by Japan.
Tech rebound sparks risk-on sentiment
The KOSPI’s surge comes after markets sold off late last week amid concerns over stretched AI valuations, which dragged global technology stocks lower. Sentiment improved markedly after US equities rebounded on Friday, prompting bargain buying across Asian markets at the start of the new week.
This renewed risk appetite was reinforced by a powerful rally in Japan, where the Nikkei 225 jumped sharply, crossing key milestones and lifting broader regional sentiment. The Nikkei’s strength helped set the tone for Asia, encouraging investors to rotate back into technology-heavy indices like the KOSPI.
Heavyweights lead the rally
Gains on the KOSPI were broad-based, with heavyweight stocks leading from the front. Samsung Electronics rose 5.74%, while SK Hynix climbed 6.08%. SK Square surged 10.12%, Hanwha Aerospace gained 5%, and Doosan Enerbility advanced 7.75%, highlighting strong participation across sectors.
AI optimism fuels chip stocks
Samsung Electronics was among the top drivers of the index as investor excitement grew around its high-bandwidth memory (HBM) roadmap. The company is set to begin mass production of sixth-generation HBM4 chips this month, with shipments expected shortly after the Lunar New Year to Nvidia. These chips are expected to support Nvidia’s next-generation AI accelerators, reinforcing optimism around demand visibility for Korean chipmakers.
Regional cues amplify gains
Beyond domestic factors, the KOSPI rally was amplified by strength across Asian markets. Japan’s Nikkei rally, along with gains in Taiwan and Hong Kong, helped reinforce the risk-on mood, while easing fears of a prolonged global tech downturn encouraged investors to selectively add exposure to semiconductors and industrials.
Bottom line
The KOSPI is up over 4% today due to a combination of a global tech rebound, strong cues from Japan’s Nikkei rally, and renewed optimism around AI-driven semiconductor demand, particularly linked to Samsung Electronics’ HBM roadmap. The move reflects a swift shift back into risk assets after last week’s sell-off rather than a single stock-specific trigger.
