South Korea's KOSPI index rebounded over 1% as local retail investors stepped in to buy stocks, countering a sell-off by foreign funds. The index had earlier faced a decline of up to 3.2%. Samsung Electronics saw its shares initially drop 6.1% due to unresolved wage negotiations with its largest union, but the losses were later mitigated. Meanwhile, SK Hynix reversed its early losses, with its shares having surged over 100% year-to-date, easing concerns about AI-related stock overheating.
Market strategist Dilin Wu from Pepperstone Group highlighted the concentration issue in the Korean stock market, dominated by Samsung and SK Hynix. While the AI hardware narrative continues to support the KOSPI, Wu noted that supply-side execution risks are emerging, challenging investor confidence.
South Korean Retail Investors Propel KOSPI Recovery Amid Foreign Sell-Off
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