Korean stocks once surged by 14%, marking the largest increase in history
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Jinse Finance reported that on July 31, the South Korean stock market climbed on Friday, rebounding from heavy losses in previous days, as major tech companies’ spending plans reignited investors’ optimism in the artificial intelligence trading boom. The benchmark KOSPI Index once surged 14%, marking the largest single-day intraday gain in history. According to foreign media analysis, SK hynix shares initially soared 28% due to the rare direct purchase of the company’s stock by SK Group Chairman Chey Tae-won; memory chip peer Samsung Electronics also jumped 26%. The KOSPI Index had previously plunged a cumulative 17% over three trading days, mainly due to concerns about rising debt levels among global tech giants. This year’s AI-driven rally has become increasingly volatile since leveraged products were launched in May. “The recent AI technology sell-off, fueled by deleveraging, de-risking, margin calls and other liquidity factors, may be stabilizing,” said Shawn Oh, head of South Korea cash equities at NH Investment & Securities.
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