KOSPI erases early 3% drop, closes up 1.76% on Monday
South Korea's KOSPI opened more than 3% lower on Monday, then reversed to close up 1.76% at 5,768.01, Chosun Biz and The Herald Business reported. Fears about debt and returns tied to AI spending drove the early drop. Battery stocks led the rebound, with Samsung SDI up nearly 12%.
South Korea's main stock index, the KOSPI, fell more than 3% at the open on Monday and then turned around to close higher, Chosun Biz and The Herald Business reported.
The KOSPI closed up 99.96 points, or 1.76%, at 5,768.01, Chosun Biz and The Herald Business reported. It opened at about 5,488, Chosun Biz and The Herald Business reported. The Herald Business put the opening drop at 3.17% and said the index finished at its best level of the day. It was the second straight day of gains, Chosun Biz and The Herald Business reported.
The early drop followed a fall in US tech stocks, Chosun Biz reported. Worries about the debt of companies building AI data centers and the returns on AI spending weighed on investors, Chosun Biz and The Herald Business reported. A US chip stock index fell in its longest losing streak since 2008, Chosun Biz and Reuters reported.
Buyers stepped in after recent heavy losses, Chosun Biz and The Herald Business reported. Institutions were net buyers and individual investors were big net sellers, Chosun Biz and The Herald Business reported.
Battery stocks led the rebound. Samsung SDI rose nearly 12% and LG Energy Solution rose more than 7%, Chosun Biz and The Herald Business reported. Samsung Electronics and SK hynix also ended higher after falling early, Chosun Biz and The Herald Business reported. The smaller KOSDAQ index rose 1.78% to 808.89, Chosun Biz and The Herald Business reported.
Across Asia, markets were more mixed. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2%, and Japan's Nikkei fell 0.7%, Reuters reported. US stock futures rose, with Nasdaq futures up 1.3%, Reuters and Bloomberg reported.
Investors are waiting for earnings this week from Meta and Tesla, Reuters and Bloomberg reported. "Several things are colliding at the same time," said Kyle Rodda, a senior analyst at Capital.com, Bloomberg reported. "AI earnings are coming up, interest-rate uncertainty is persistent and the midterms are a few weeks away."
What we know: The KOSPI recovered from a drop of more than 3% to close up 1.76% at 5,768.01.
What we don't: Whether the rebound will hold as AI earnings come out this week.
Where outlets agree Chosun Biz and The Herald Business report that the KOSPI opened more than 3% lower and closed up 1.76% at 5,768.01.
Where they differ The outlets cited here report the same key facts so far.