Synopsis

South Korean equities rebounded sharply on Friday, with the Kospi jumping nearly 6%, led by strong gains in heavyweight stocks like Samsung Electronics and SK Hynix. The recovery came after earlier losses driven by a global tech selloff and concerns that the AI-driven rally may be peaking.

South Korean equities rebounded sharply on Friday, with the Kospi jumping nearly 6%.

South Korean shares rallied nearly 6% on Friday, but face a second weekly decline after Samsung Electronics and SK Hynix were pulled lower by heavy losses in global technology companies earlier in the week, amid concerns that the AI-driven rally might have peaked.

The benchmark Kospi surged 440 points, or 5.76%, at 8,008 as of 03:32 GMT. For the week, the index is down 3.84%.

Samsung Electronics shares rallied over 8% among index heavyweights, after reports claimed that Anthropic PBC was in talks with the chipmaker to be a manufacturing partner for a custom AI chip.

Meanwhile, shares of SK Hynix jumped 7%, while LG Energy Solution climbed marginally.

Of the 912 issues traded, 406 shares advanced, while 471 declined.

According to Reuters, foreigners emerged as the net sellers of shares worth 1,501.9 billion won.

The won weakened against the dollar, and was quoted at 1,544.4 per USD on the onshore settlement platform, 0.28% lower than ‌its previous close at 1,540.0.

In offshore trading, the won was quoted at 1,544.5 per USD, down 0.3% on the day, while in non-deliverable forward trading, ⁠its one-month contract was quoted at 1,543.2, according to a report by Reuters. The won has fallen 6.8% against the USD so far this year.

The Kospi has climbed 89.25% so far this year.

As per a report by Reuters, in money and debt markets, September futures on three-year treasury bonds gained 0.08 point to 103.11.The most liquid three-year Korean treasury bond yield slipped by 1.5 basis points to 3.732%, while the benchmark 10-year yield fell by 0.7 basis points to 4.173%.

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