South Korea’s benchmark Kospi index experienced a dramatic rally on Friday, climbing 17.9% to reach 6,695.45 in its most significant single-day gain on record. The surge was led by technology stocks, particularly semiconductor manufacturers, with Samsung Electronics gaining 28% and SK Hynix rising 30% as investors returned to previously abandoned positions.
The rebound reflected broader market sentiment shifts following Microsoft’s Thursday earnings announcement, which exceeded analyst expectations and demonstrated that substantial corporate spending on artificial intelligence is generating profitable returns. The technology giant’s shares themselves advanced 15.5%, marking their best performance in nearly 18 years. This positive signal prompted traders to reverse course after a three-day sell-off that had wiped out more than 17% of the Kospi’s value amid concerns about an AI investment bubble and emerging competition from Chinese rivals.
Despite Friday’s gains, the Kospi remains substantially below its June peak of over 9,000 points. The previous record for a single-day percentage gain, approximately 12%, occurred in October 2008 during the global financial crisis. Regional markets also participated in the recovery, with Japan’s Nikkei 225 climbing 4% and Taiwan’s Taiex surging 8%, while major European indices posted more modest gains in early trading.
Currency markets showed movement as well, with the dollar rebounding against the Japanese yen to 160.28 after earlier weakness, possibly influenced by suspected regulatory intervention from both the Federal Reserve and Bank of Japan. Both central banks maintained their interest rates unchanged during policy meetings, with the rate differential between the U.S. and Japan continuing to exert downward pressure on the yen. Oil prices declined over 1% amid ongoing tensions affecting the Strait of Hormuz, with Brent crude falling to $85.70 per barrel.
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