South Korea's Stocks See Dramatic Surge After Historic Drop
The KOSPI benchmark index rocketed 338.41 points, or 6.84 percent, to close at a fresh record of 5,288.08. The tech-heavy KOSDAQ jumped 45.97 points, or 4.19 percent, ending at 1,144.33.
Both indexes had crashed the previous session, with the KOSPI plummeting 5.26 percent and the KOSDAQ tumbling 4.44 percent.
Investors hunting for discounted assets piled into blue-chip names as markets digested conflicting assessments of monetary policy signals from Kevin Warsh, nominated to lead the U.S. Federal Reserve.
A buy-side sidecar halted program trading early in the session after KOSPI 200 futures surged beyond 5 percent. The sidecar mechanism—a five-minute pause on automated trading orders—activates when KOSPI 200 futures swing more than 5 percent in either direction, designed to prevent panic-driven market moves.
Monday saw a sell-side sidecar triggered as Warsh's nomination fueled concerns about tighter U.S. monetary conditions.
Foreign and institutional buyers drove the KOSPI's rally, while retail traders were net sellers across both exchanges.
Blue-chip leaders powered the surge. Market heavyweight Samsung Electronics soared 11.37 percent, while memory chip powerhouse SK Hynix spiked 9.28 percent.
Top automaker Hyundai Motor advanced 2.82 percent, and battery giant LG Energy Solution climbed 2.89 percent.
Leading biopharmaceutical manufacturer Samsung Biologics rose 2.22 percent, while defense contractor Hanwha Aerospace mounted 4.84 percent.
Shipbuilding leader HD Hyundai Heavy Industries picked up 6.01 percent, and energy infrastructure provider Doosan Enerbility gained 5.80 percent.
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