Accra:Seoul South Korean stocks rebounded significantly on Wednesday, recovering from steep losses in the previous session. Semiconductor shares rallied due to easing concerns over artificial intelligence (AI) spending, resulting in the strengthening of the Korean won against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 182.92 points, or 3.29 percent, closing at 5,735.66. The index had risen as high as 5,816.43 during the session. This sharp rally led the Korea Exchange (KRX) to activate a buy-side sidecar shortly before 11 a.m., halting program buying for five minutes after KOSPI 200 futures rose more than 5 percent. This was the first activation of such a measure in two months.
The rebound followed a nearly 4 percent plunge in the main index the previous session, driven by renewed concerns over massive AI infrastructure spending. The investor sentiment improved notably after U.S. AI server maker Super Micro Computer reported better-than-expected earnings, alleviating worries over AI-related investments. This development boosted shares of major chipmakers Samsung Electronics and SK hynix.
In the United States, stock market performance varied overnight. The Dow Jones Industrial Average rose by 1.02 percent, while the tech-heavy Nasdaq composite experienced a slight decline of 0.02 percent.