Kospi surges 10% in record rally as yen volatility signals suspected intervention

South Korea's benchmark index erased weeks of losses in a single session, while the yen's sharp move against the dollar suggests central bank action is underway.

By Handelsavisen Newsroom · Automated 2026-07-31 02:49 UTC · 1 min read

South Korea's Kospi index jumped more than 10% on Friday, staging a historic recovery that wiped out steep losses accumulated earlier in the week.

The rally was part of a broader surge across Asian equity markets, which rallied in tandem with Wall Street gains.

The magnitude of the move in Seoul marks a dramatic reversal of sentiment, lifting hopes that the worst of the recent market turbulence has passed.

The yen stole the spotlight in currency markets, with its sharp appreciation against the dollar sparking widespread speculation of official intervention.

Traders are closely monitoring the move, as it suggests the Bank of Japan may be stepping in to curb the yen's slide.

The currency's volatility adds a layer of complexity to the risk-on mood in equities, as investors weigh the implications of potential monetary policy shifts in Tokyo.