Kospi surges 15% as AI stocks rebound from recent crash

South Korea's benchmark index staged a dramatic reversal, erasing weeks of losses as technology shares rallied in tandem with Wall Street's recovery.

By Handelsavisen Newsroom · Automated 2026-07-31 01:47 UTC · 1 min read

South Korea's Kospi index jumped 15% early in trading on Thursday, marking a dramatic reversal for the market after a period of severe volatility.

The rally was driven by a broad-based recovery in artificial intelligence and technology stocks, which had been the primary drivers of the index's recent decline.

The Kospi's surge comes just days after the index crashed nearly 10% on Tuesday, triggering a 20-minute trading halt as a massive sell-off swept through the technology sector.

The sharp rebound followed a similar recovery on US exchanges, where tech-heavy indices also posted significant gains on Wednesday.

The synchronized move suggests that global risk sentiment is stabilizing after the panic selling that engulfed Asian markets earlier in the week.

The Kospi's surge comes just days after the index crashed nearly 10% on Tuesday, triggering a 20-minute trading halt as a massive sell-off swept through the technology sector.

That decline had extended the index's drop from recent record highs, raising fears of a deeper bear market for the AI-driven rally that had powered South Korean equities.