South Korea's Kospi has staged a reversal from its latest rout, returning to bull-market territory as investors pile back into the country's semiconductor giants that dominate the index.
The benchmark has climbed more than 20% from its July low, the commonly used threshold for a bull market, after a rout driven partly by leveraged positions and forced selling pushed it into bear-market territory last month.
The speed of the turnaround underscores the massive volatility in tech stocks and raises a bigger question: How much longer wiil the South Korean rally last?
For bulls, the answer rests largely on whether the fundamentals behind Korea's semiconductor giants can keep pace with increasingly optimistic expectations. Strong U.S. technology earnings and continued commitments to AI infrastructure spending have helped revive confidence that demand for memory chips will remain robust.
