South Korean stocks rebounded sharply on Wednesday, with the Korea Composite Stock Price Index (KOSPI) climbing 3.29% to close at 5,735.66. This surge, amounting to a gain of 182.92 points, came after investor concerns over heavy spending on artificial intelligence (AI) eased, following strong earnings reports from key companies in the sector.
The rally was notably fueled by better-than-expected earnings from Super Micro Computer, a US-based AI server manufacturer, which helped alleviate fears about AI infrastructure investments. This positive sentiment buoyed major South Korean technology stocks, including Samsung Electronics, which rose 5.67% to 223,500 won, and SK hynix, which gained 5.81% to 1.29 million won. SK Group’s holding company, SK Corp., also saw a significant rise of 12.62% to 482,000 won as it bounced back from previous losses.
LS Electric enjoyed a 7.02% increase, closing at 166,100 won, after reporting strong third-quarter earnings driven by the growing demand for power equipment used in AI data centers. However, not all sectors fared well; defense company LIG D&A saw its shares plummet 9.03% to 498,500 won after being barred from bidding on defense contracts for two years due to bribery allegations.
The KOSPI’s surge was significant enough to trigger a temporary suspension of program buying on the Korea Exchange, as KOSPI 200 futures rose more than 5%, marking the first such intervention in two months. Foreign investors played a crucial role in the market’s recovery, purchasing a net 659.96 billion won worth of South Korean shares.
The Korean won also strengthened slightly against the US dollar, trading at 1,325.2, an improvement of 0.8 won from the previous session’s close. Overall, the day’s developments reflected a renewed investor confidence in technology stocks, as robust corporate earnings helped ease broader market pressures and concerns over AI infrastructure spending.