South Korea’s Kospi index surged nearly 18% on Friday, July 31, heading for its largest one-day gain after three sessions of heavy losses. Chipmakers led the rebound, while Wall Street’s technology rally restored confidence across global markets.
The Kospi rose 18.27% to 6,615.60 earlier in the session. It later stood 17.9% higher at 6,695.45 as buying accelerated. Samsung Electronics climbed 28%, while SK Hynix jumped 30%. Both companies became the main drivers of the benchmark’s historic advance.
The rally followed a three-day decline of more than 17%. Investors had sold technology shares amid concerns about an AI bubble and stronger Chinese competition. The Kospi still remained below its June record above 9,000. Before Friday, its largest daily rise was nearly 12% during the October 2008 financial crisis.
Asian markets followed a strong technology-led session on Wall Street. United States chip stocks recorded their biggest one-day gain in more than a year.
Microsoft shares surged 15.5%, marking their strongest session in nearly 18 years. Its quarterly profit exceeded expectations and suggested that large AI spending could support earnings. Amazon added 9.5% in after-hours trading following strong results. In contrast, Apple dropped more than 6% after warning that supply shortages could affect sales.
Nasdaq 100 futures also moved higher after the index ended a six-day losing streak. TSMC gained about 10% and supported the wider Asian market advance.
Can the rebound hold as investors assess the United States economy, rising oil prices and continuing tensions in the Middle East?
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Investors returned to technology shares after the steep sell-off created lower entry prices. The renewed demand quickly lifted stocks that had suffered earlier in the week. Japan’s Nikkei 225 climbed 4% to 64,362.02. SoftBank Group advanced 13.8%, while chip equipment producer Tokyo Electron gained 6.2%.
European markets also opened higher. Germany’s DAX rose 0.7%, France’s CAC 40 added 0.9%, and Britain’s FTSE gained 0.5%. United States futures increased 0.5%. Oil prices resumed climbing after Brent crude had edged lower as shipping conditions through the Strait of Hormuz showed improvement.
The dollar recovered 0.5% to 160.28 yen after falling sharply overnight. Markets suspected intervention by Japanese and United States regulators near the 160-yen level.
The Kospi’s nearly 18% surge followed a sharp rebound in Samsung Electronics, SK Hynix and other AI-linked shares. Wall Street’s technology gains and bargain buying strengthened the recovery. Investors will now watch economic data, oil prices, supply constraints and Middle East developments for signs that the rebound can continue.