Seoul Stocks Rebound Over 3% on Eased AI Spending Woes

On Wednesday, South Korean stocks surged by more than 3%, marking a recovery from previous losses. The Korea Composite Stock Price Index (KOSPI) rose by 182.92 points, closing at 5,735.66. This positive shift in investor sentiment was largely influenced by easing worries over artificial intelligence (AI) spending.

The rebound followed a nearly 4% drop in the previous session, prompted by fears regarding substantial AI infrastructure investments. However, the market was buoyed by better-than-expected earnings from Super Micro Computer, a U.S. AI server manufacturer, which helped lift shares of major semiconductor companies like Samsung Electronics and SK Hynix.

Samsung Electronics saw a notable increase of 5.67%, while SK Hynix advanced by 5.81%. The overall market sentiment improved, leading to increased trading activity, with foreign investors purchasing a net 659.96 billion won worth of shares.

Analysts noted that the recovery was also supported by bargain hunting after the sharp sell-off in the previous session. Han Ji-young, an analyst at Kiwoom Securities, stated, "The local market rebounded on bargain hunting after the previous session's sharp sell-off, buoyed by easing concerns over oil prices and interest rates."

Despite the positive turn, trade volume remained light, with 214.35 million shares traded. The Korean won also strengthened against the U.S. dollar, reflecting improved market conditions.