KOSPI clawed back early losses and finished up 2.24% on Tuesday as institutional buying overpowered a wave of selling tied to fading enthusiasm for AI spending and a sharp slump in U.S. chip stocks.
KOSPI rebounds 2.24% as institutions buy semiconductors
The benchmark closed at 5,859.08 after falling at the open on concerns that the recent AI-led rally may have run ahead of earnings. The turnaround matters because South Korea’s market has become heavily exposed to the global semiconductor cycle, and the latest move shows domestic institutions still willing to support the index when overseas sentiment turns shaky.
Sentiment Indicators
Intel’s 28.5% plunge in New York on Friday helped sour the mood after disappointing reactions to earnings from Alphabet and Amazon revived questions about the profitability of AI investment. That spilled into Seoul, but the damage was limited after institutions stepped in with net purchases of 205.9 billion won, while retail and foreign investors each sold more than 100 billion won.
Semiconductors led the rebound, rising 2.75% as Samsung Electronics gained 1.78% to recover the 229,000 won level and SK Hynix climbed 3.81% to 1,472,000 won. SK Square rose 5.91%, while Wonik Holdings jumped 9.66% and Hyosung Heavy Industries advanced 13.32%, underscoring how quickly sentiment can swing back toward AI-linked and equipment names when buyers return.
The move also lifted broader risk appetite. Shipbuilding gained 6.56%, electric equipment rose 7.39% and aerospace and defense added 4.86%, while banks and pharmaceuticals slipped.
Kosdaq also recovered, rising 1.38% to 734.36 as institutions bought 56.3 billion won, offsetting selling by retail and foreign investors.
For investors, the key issue is whether the latest bounce marks a durable rotation back into semiconductors or just a short-covering rally after a global tech selloff. Market participants are now watching U.S. chip earnings, labor data, Treasury issuance plans and the U.S. midterm election outcome for clues on rates, risk appetite and AI capex demand.
| Entity | Gains | Losses |
|---|---|---|
| KOSPI bulls | ▲Rebound on institutional buying | ▼Early AI-led selloff |
| Samsung Electronics and SK Hynix | ▲Semiconductor-led recovery | ▼U.S. tech weakness spillover |
| Institutional investors | ▲Bought the dip | ▼Short-term volatility risk |
| Retail and foreign sellers | ▲Cash protection | ▼Missed rebound in chips |
