South Korea's benchmark Kospi index closed higher on Thursday, supported by sustained institutional buying that erased early session losses.

The advance marks a continuation of the recovery momentum that has characterized the market over the past two trading days.

The index recovered from early losses late Wednesday, driven by a similar wave of institutional buying.

Market participants appear to be reassessing the next phase of the artificial intelligence investment cycle, providing a floor for equity prices despite broader regional volatility.

This pattern of intraday recovery suggests that sell-side pressure is being absorbed by larger funds, potentially signaling a stabilization in sentiment.

The consistent institutional interest indicates that the recent dip was viewed as a buying opportunity rather than a fundamental deterioration in outlook.