South Korea’s Kospi plunged 6% on Friday after a historic rally pushed valuations and positioning to extremes, briefly topping 8,000 for the first time. The rebound had been powered by AI-linked memory-chip demand, concentrated in Samsung Electronics and SK Hynix. Once foreign investors began booking profits, the decline accelerated because the index’s gains depended heavily on those same stocks. Samsung fell nearly 9% and SK Hynix slid 8%, while global risk concerns and higher bond yields added pressure.
South Korea’s Kospi whipsawed sharply, briefly crossing the historic 8,000 level before plunging more than 6% as tech stocks sold off and foreign investors exited. The index erased its early gains to close at 7,493.18, while the Kosdaq fell over 5%. Samsung Electronics became the focal point after its union approved an 18-day strike starting May 21, even as the company offered fresh wage talks. The shock spread across Asian markets amid geopolitical noise and renewed US Iran pressure.
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South Korea’s Kospi surged to a record high as Samsung Electronics rallied sharply, fueled by optimism around artificial intelligence-driven growth. Chipmaker SK Hynix also gained strongly, reinforcing the market’s AI momentum. Across the ocean, Wall Street pushed to fresh all-time highs as easing oil prices and corporate results beating expectations supported risk-on trading.
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