AI Boom Makes a Comeback, South Korean Stock Market Rebounds Strongly

TechFlow news, August 13, South Korea's stock market surged on Thursday, with the South Korean KOSPI index entering a technical bull market. The global AI trading frenzy has returned, driving a strong rebound in the South Korean stock market after it experienced a historic sell-off last month. The KOSPI index rose more than 4% at one point during early trading, with a rebound magnitude of about 23% from the low on July 30. Index heavyweight stocks Samsung Electronics and SK Hynix led the gains, with the two chip giants rising more than 4% and 7% respectively.

Fundstrat Global Advisors stated that as South Korea's large memory chip manufacturers regain strength, the rebound in the South Korean stock market may have further room. The firm's Head of Technical Strategy Mark Newton stated that driven by the rise in stock prices of Samsung Electronics and SK Hynix, the iShares MSCI South Korea ETF has broken through key technical levels, improving the short-term outlook for the South Korean stock market. A more important signal may come from the memory chip stocks themselves.

Fundstrat stated that one of the sectors that suffered the heaviest declines during the recent technology stock sell-off was memory chip stocks, and now these stocks are beginning to outperform the overall technology sector, marking the first time this has occurred since June. (Jin10)