South Korea’s KOSPI rose 3.21% on Thursday, completing a more-than-20% rebound
from the July 30 close low and entering a technical bull market; SK Hynix and
Samsung Electronics gained about 6% and 4% respectively. The index had plunged
22% in July, its worst monthly drop since the global financial crisis. KB
Securities global investment strategist Peter Kim said the AI-led rally and
earnings upside were present through the selloff, arguing fundamentals—not
valuations—are driving the market rebound; he cited technical factors and flows
as the root of the prior selloff and said regulator tightening and brokers’
resumption of normal risk controls have eased forced deleveraging. Phillip Wool,
head of research at Ruilian Caizhi, said the market is effectively trading as an
AI-hardware market: the rebound reflects receding forced selling, dip-buying and
FOMO, and has been supported by stronger-than-expected results that lift AI
spend and hardware earnings forecasts; he warned a setback—such as weak capex
guidance or renewed Fed tightening—could prompt a pullback. Global X strategist
Billy Leung said corporate-governance and value-unlocking plans should help
narrow Korea’s valuation discount, and he leans toward a fundamentals-led rally
given rising semiconductor profit forecasts, but rising retail participation and
index concentration show early late-cycle signals. Fibonacci Asset Management
CEO Zheng Renyun urged caution: his base case is a broader bull trend supported
by semiconductor earnings and improved risk appetite, but he expects the pace to
slow and for consolidation after sharp gains.
