Seoul:Seoul stocks rebounded by more than 2 percent on Friday, ending a seven-day losing streak. This recovery was driven by a reduction in the chip market turmoil and increased speculation about the Federal Reserve's future interest rate decisions.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 113.83 points, or 2.05 percent, closing at 5,668.05. The index had earlier reached a high of 5,809.94. Trade volume was light, with 286.5 million shares exchanging hands, valued at 20 trillion won (US$15 billion). The market saw 757 stocks rise compared to 134 that fell.
Investors took advantage of lower prices to purchase large-cap tech stocks, especially targeting major chipmakers that had suffered losses exceeding 10 percent in the previous session. Foreign investors were net buyers, acquiring stocks worth 343.5 billion won, while retail and institutional investors sold off a combined net 1.17 trillion won.
During the 2026 IMF-World Bank annual meetings held in Bangkok, Federal Reserve Chair Kevin Warsh expressed confidence in the U.S. economy, avoiding any indication of a rate hike this month. Warsh's statements helped renew interest in riskier assets amid recent U.S. inflation data showing faster-than-expected price increases. His optimism extended to artificial intelligence (AI), which he called "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 the Fed Chair's positive outlook on AI, despite concerns about credit risks and funding challenges faced by AI companies.
Further boosting sentiment, Nvidia CEO Jensen Huang highlighted the improving financial health of its partner cloud company, CoreWeave, amidst concerns over the firm's AI-related debt. CoreWeave's shares dropped over 15 percent on Wednesday following a sharp rise in its bond yields, causing investor anxiety.
In Seoul, most major stocks closed higher. Samsung Electronics, a leading semiconductor company, increased by 2.62 percent to 215,500 won, while SK hynix saw a slight rise of 0.79 percent to 1,272,000 won. Hyundai Motor, Hanwha Aerospace, and Celltrion also posted gains, advancing by 5.58 percent, 7.77 percent, and 6.53 percent, respectively.
The Korean won strengthened against the U.S. dollar, trading at 1,331.4 won as of 330 p.m., up 13.2 won from the prior session.