South Korea's Kospi index recorded its largest single-day gain ever as AI-related stocks rebounded from recent losses.
The Kospi index in South Korea jumped nearly 18% on Friday, marking its largest single-day gain in history. The surge was driven by a sharp rally in technology stocks, particularly chipmakers like Samsung Electronics and SK Hynix, which saw gains of 28% and 30% respectively. This rebound follows a period of bruising sell-offs caused by investor concerns regarding high artificial intelligence (AI) valuations and competition from Chinese rivals. Investors returned to the market after Microsoft reported stronger-than-expected profits and cloud growth, signaling that heavy spending on AI infrastructure remains robust. Similarly, Amazon reported second-quarter revenue that beat analyst expectations, driven by cloud-computing strength. These results reassured investors that large-scale AI investments are translating into tangible profits. The rally also extended to other Asian markets, with Tokyo's Nikkei 225 climbing 4% and Taiwan's Taiex surging 8%. Meanwhile, oil prices slipped as tanker crossings in the Strait of Hormuz increased, easing supply pressure.