South Korea’s benchmark Kospi index jumped more than 6% on Wednesday, marking a decisive acceleration in buying interest as brokers indicated the unwinding of leveraged bets is nearing its end.
The sharp advance suggests that the deleveraging cycle, which had previously dragged the index nearly 30% below its peak, is finally losing momentum.
2% higher on Friday, driven by a wave of domestic buying, before jumping more than 5% on Thursday as it approached the 9,000 mark.
The rally extends a multi-day recovery that has seen bargain hunting intensify among local investors.
The index had already opened 1.2% higher on Friday, driven by a wave of domestic buying, before jumping more than 5% on Thursday as it approached the 9,000 mark. The recent surge has been anchored by strong inflows into the technology sector, with semiconductor stocks leading the broad market rebound.
This shift in sentiment marks a potential turning point for the market after a prolonged period of selling pressure.
The conclusion of the margin unwind implies that forced selling from leveraged positions is subsiding, allowing fundamental valuation and bargain-hunting dynamics to take precedence.