Overview
- The KOSPI climbed 2.05 percent to 5,668.05 on Oct. 16, snapping a seven-day slide as investors bought beaten-down large-cap technology and chip names.
- Foreign investors were net buyers of 343.5 billion won while retail and institutional investors sold a combined net 1.17 trillion won, signaling a shift in market leadership.
- Comments from Federal Reserve Chair Kevin Warsh at international meetings lifted risk appetite by expressing optimism about the U.S. economy and AI growth prospects, prompting bargain hunting in Seoul.
- Nvidia CEO Jensen Huang’s public reassurance about partner cloud provider CoreWeave helped calm some concerns, but CoreWeave’s earlier spike in bond yields near 15 percent and a >15 percent equity drop underline persistent credit stress in AI-focused firms.
- The Korean won strengthened to 1,331.4 per U.S. dollar and three- and five-year yields ticked down, while light trading volume suggests the rally was driven more by repositioning than broad buying.