Kospi Index Jumps 16% as AI Stocks Bounce Back
The South Korean Kospi index surged more than 16% on July 31, mirroring gains on Wall Street. This uptick was largely driven by a rebound in artificial intelligence-related stocks after losses earlier in the week.
U.S. futures edged higher and oil prices rose due to tensions between the U.S. and Iran. The Strait of Hormuz remained closed, impacting global oil transport.
The Kospi index had sunk more than 17% in the previous three days as investors dumped technology stocks over concerns about an AI bubble and rising competition from Chinese chipmakers and AI rivals.
Microsoft's report of stronger-than-expected profits for the last quarter helped to revive investor confidence. The tech giant's shares soared 15.5%, marking its best day in nearly 18 years.
SoftBank Group, an OpenAI investor, jumped 15% after the suspected intervention in the market by the Federal Reserve Bank of New York.