South Korean Shares Rally on Risk-On Mood
The KOSPI Composite Index surged nearly 3% to over 4,050, recovering from last week's losses as global risk sentiment improved with hopes for an end to the US government shutdown. Bargain hunters boosted chipmakers and AI stocks, with SK Hynix up 5.1% and Samsung Electronics up 2.4%. Financial firms also saw gains, including KB Financial (4.3%) and Shinhan Financial (2.7%). However, South Korea's market faces potential volatility due to record-high margin lending.
The KOSPI Composite Index rallied nearly 3% to above 4,050 on Monday, recovering more than half of the losses from last week as global risk sentiment improved amid hopes for an end to the record-long US government shutdown.
Last week, global stocks came under pressure, with technology shares bearing the brunt due to mounting concerns over stretched AI valuations.
However, those fears appear to have eased at the start of the week, with bargain hunters stepping in.
Chipmakers and AI-related stocks led the advance, with strong gains from SK Hynix (5.1%), Samsung Electronics (2.4%) and Koh Young Technology (10.6%).
Financial firms also contributed to gains, including KB Financial (4.3%), Shinhan Financial (2.7%) and Mirae Asset Securities (3.5%).
Meanwhile, South Korea’s market remains vulnerable to heightened volatility as margin lending jumped to an all-time high last week.
