Record 18% surge in South Korea’s stock market

South Korea’s KOSPI stock market surged by a record 18% on Friday. This marks the largest single-day percentage gain in the history of the KOSPI.

This impressive rally was driven by a continued recovery in global technology stocks and renewed investor interest in companies linked to artificial intelligence (AI). This surge followed a period of heavy selling in tech stocks over the preceding three days.

Chipmakers Lead the Market Rally

Semiconductor (chip) manufacturing companies played the biggest role in this market surge. Shares of South Korean giants SK Hynix and Samsung Electronics both jumped by more than 23%.

Additionally, shares of the major Taiwanese chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), rose by 10%. These three companies emerged as the top contributors to the MSCI Asia Pacific Equities Index.

Positive Trends in Emerging Markets and Currencies

The rally in Asian markets also had a clear impact on emerging markets. The MSCI Emerging Markets Equities Index climbed 6.1%, marking its biggest single-day gain in six years.

With this rise, the index’s weekly gain reached 1.8%. Meanwhile, an index tracking emerging market currencies also strengthened by 0.3%.