Seoul:Seoul stocks surged more than 2 percent on Friday, ending a seven-day losing streak. This rebound was attributed to an easing in the chip stock downturn and renewed speculation regarding the Federal Reserve's rate hikes.
According to Yonhap News Agency, the Korean won strengthened against the U.S. dollar. The Korea Composite Stock Price Index (KOSPI) closed up by 113.83 points, or 2.05 percent, finishing at 5,668.05. It had previously risen to a high of 5,809.94 during the session.
Investors were observed engaging in bargain hunting, particularly for large-cap tech stocks, including the leading chip manufacturers in the country. These stocks had suffered a decline of over 10 percent in the previous session.
At the 2026 IMF-World Bank annual meetings in Bangkok, Federal Reserve Chair Kevin Warsh expressed optimism about the U.S. economy's strength. However, he did not indicate whether a rate hike would occur this month. Warsh's comments spurred interest in riskier assets, supported by recent U.S. inflation data that showed faster-than-expected price increases.
Investor sentiment was further bolstered by Warsh's positive outlook on artificial intelligence (AI), which he described as "probably the most consequential change to the U.S. and the global economy in my lifetime." Seo Sang-yong, an analyst at Mirae Asset Securities, noted the significance of Warsh's positive assessment of the AI industry's structural growth, despite existing concerns over credit risks and funding challenges in the sector.