South Korea's 'bipolar' stock market: meltdowns, a record rally and what's to come
📰 source: cnbc_topnews · 💼 business
the kospi jumped 14% on friday, its largest one-day gain on record, after a month of violent swings that have tied south korea's market to the global ai trade. sk hynix saw a record rebound, and samsung electronics soared. the reversal followed a strong overnight rally in us tech stocks, after upbeat earnings from microsoft, amazon, and meta, and sk group chairman chey tae-won disclosed purchases of sk hynix shares.
foreign investors led friday's surge, with short-covering and leveraged-etf rebalancing amplifying gains. new cash-deposit rules for leveraged etfs, effective july 31, may have added to repositioning. jung in yun of fibonacci asset management called the market 'bipolar,' but said more room for rebound exists since positioning was extremely bearish and sk hynix's ai-memory fundamentals remain strong.
analysts are split on durability. rolf bulk of futurum group said forced selling has largely run its course and the ai build-out shows no sign of slowing. paul gambles of mbmg warned that heavy leverage and fragile confidence leave markets vulnerable to a bigger correction. investors now watch whether foreign buying continues after short-covering fades.
why it matters: record rebound after forced selling may test whether foreign buyers stay, deciding if korea's ai-driven rally has legs.
source: cnbc_topnews
sentiment: +0.00 · impact: 0.60