KOSPI surges 14% to record largest single-day intraday gain

South Korea’s stock market rose on Friday, rebounding from recent steep declines as spending plans by major tech companies reignited investor optimism about the AI trading frenzy. The benchmark KOSPI index surged as much as 14%, marking its largest intraday gain in history. Foreign media analysis attributed the early-session rally in SK Hynix shares to an unusual direct purchase of the company’s stock by SK Group Chairman Choi Tae-won, sending its price up as much as 28%; Samsung Electronics, a peer in the memory chip sector, also rose 26%. The KOSPI had plunged 17% over the prior three trading sessions, primarily due to concerns over rising debt levels among global tech giants. The sharp rally driven by AI since earlier this year has become increasingly volatile since the launch of leveraged products in May. “The recent AI tech sell-off, driven by deleveraging, risk-off sentiment, liquidations, and other liquidity factors, may be stabilizing,” said Shawn Oh, Head of Korea Spot Equities at NH Investment & Securities. Meanwhile, Japan’s stock market also gained momentum, with the Nikkei 225 rising 4% in early trading and surpassing 64,000 points. (Kimten)