South Korean stocks rallied on Thursday, pushing the benchmark Kospi into a technical bull market. The global revival in AI trade has fueled a sharp recovery after last month's historic sell-off.
The Kospi jumped over 4%, taking its rebound from its July 30 low to roughly 23%.
Index heavyweights Samsung Electronics and SK Hynix led the gains, with the chip giants rising over 4% and 7%, respectively.
Investor appetite for technology hardware stocks is returning as the latest earnings from global tech giants point to continued heavy spending on artificial intelligence.
Fundstrat Global Advisors notes that the rebound in South Korean stocks could have further to run as strength returns to the country's heavyweight memory-chip makers.
Mark Newton, the firm's head of technical strategy, stated that the iShares MSCI South Korea ETF has broken above a key technical level, improving the near-term outlook for Korean equities.
