As of 10:37 a.m., the benchmark KOSPI jumped 2.87 percent to 7,454.62 after tumbling more than 10 percent over the previous three sessions. The junior KOSDAQ climbed 3.66 percent to 813.70, also rebounding from a nearly 10 percent decline this week.
Chipmakers spearheaded the recovery after the Bank of Korea said the recent correction in domestic equities was unlikely to develop into a prolonged downturn, citing improving earnings prospects for semiconductor companies. The central bank also said the global chip upcycle should remain intact as AI adoption broadens and major technology companies continue pouring investment into AI infrastructure.
The upbeat domestic assessment contrasted with a more cautious tone overseas. Goldman Sachs said overnight that while companies are still expected to beat earnings estimates, strong results alone may no longer be enough to sustain the AI-driven rally because investor expectations have become increasingly demanding.
Samsung Electronics rose 3.15 percent to 286,250 won after sliding 6.25 percent in the previous session to its lowest close since May 20. SK hynix rallied 7.90 percent to 2,240,000 won after falling 5.68 percent to its weakest finish since June 5, buoyed by expectations ahead of Friday's American depositary receipt (ADR) debut on Nasdaq.
The gains spread across technology and large-cap stocks. SK Square climbed 5.98 percent, LG Energy Solution advanced 4.60 percent, Samsung Electro-Mechanics added 3.45 percent, Samsung Electronics preferred shares rose 3.32 percent, Samsung C&T gained 2.78 percent and KB Financial advanced 1.81 percent. HD Hyundai Heavy Industries edged up 0.97 percent, while Samsung Biologics and Shinhan Financial Group were little changed, rising 0.29 percent and 0.09 percent, respectively.
Losses were confined to a handful of cyclical names. Hanwha Aerospace fell 3.75 percent, Kia dropped 3.64 percent, Samsung Life Insurance lost 3.03 percent and Hyundai Motor slipped 2.05 percent.
The won weakened against the dollar to 1,506.80 from the previous close of 1,498.50 despite a return of foreign buying.
Overnight, Wall Street finished mixed as renewed military tensions between the United States and Iran kept investors cautious. The Dow Jones Industrial Average fell 1.09 percent and the S&P 500 lost 0.28 percent, while the Nasdaq Composite edged up 0.20 percent.
Elsewhere in Asia, Japan's Nikkei 225 rose 2.08 percent and Hong Kong's Hang Seng Index gained 0.18 percent. China's Shanghai Composite was the regional laggard, easing 0.02 percent.
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