South Korean stocks staged a sharp rebound Friday as investors moved back into the market following a nearly 10% drop over the previous two sessions. The Kospi Index gained 5.8%, helped by strong rallies in Samsung Electronics (SSNLF) and SK Hynix (HXSCL), which both rose more than 8%. The move came as AI-related sentiment remained highly sensitive, with the Korea Exchange briefly halting program buying after Kospi futures jumped.
The rebound followed a heavy Thursday selloff, when SK Hynix saw its biggest daily plunge since 2008 and Samsung dropped 9% on concerns about possible industry overcapacity. Investor sentiment appeared to shift after a report said Anthropic is in talks with Samsung to co-develop a custom AI chip. While the potential near-term earnings impact could be limited because the discussions are still early-stage, the development may be strategically positive for Samsung's foundry outlook and its role in the AI semiconductor supply chain.
Investors are now focused on Samsung's preliminary earnings due Tuesday, which could become an important signal for global chip stocks. Analysts expect Samsung, the world's largest memory chipmaker, to report preliminary operating profit of 85 trillion won, or $55.3 billion, for the June quarter, an 18-fold increase from a year earlier. Even after Friday's rebound, foreign funds and retail investors were net sellers of Kospi stocks, while local funds added positions, suggesting investors may still be cautious about the sustainability of the AI-led memory upcycle.