Kospi Surges on Chipmaking Stocks Rebound

South Korea's Kospi index surged more than 16% on Friday as chipmaking stocks rebounded after losses earlier in the week. The jump was led by Samsung Electronics, which rose 24.8%, and SK Hynix, up 27.8%. This turnaround comes after investors had dumped technology stocks over AI bubble fears and rising competition from Chinese rivals.

The Kospi's gains tracked Wall Street's strong performance, with Microsoft reporting stronger-than-expected profits for the last quarter. This boosted shares in tech companies that had recently fallen due to doubts about the returns on big investments in AI. The rebound was described by Stephen Innes of SPI Asset Management as 'the market going from throwing AI stocks overboard to fighting for the remaining seats'.

Meanwhile, Tokyo's Nikkei 225 climbed 5.5% in early trading, with SoftBank Group up 15% and chip equipment maker Tokyo Electron rising nearly 11%. The dollar fell against the Japanese yen after suspected intervention in the market but rebounded to 160.59 yen.