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Markets Score 68 Bullish

Kospi Hits All-Time High as AI Demand and Geopolitical Thaw Fuel Rally

Apr 21, 2026 00:14 UTC
Samsung Electronics, SK Hynix
Short term

South Korean equities surged to record levels on Tuesday, led by semiconductor giants Samsung and SK Hynix. The rally reflects renewed investor confidence in artificial intelligence and hopes for a diplomatic resolution between the US and Iran.

  • Kospi rose up to 2.2% to reach a record intraday high
  • Recovery follows losses caused by Iran-related conflict on Monday
  • Samsung Electronics and SK Hynix acted as primary drivers
  • AI trade momentum remains a core catalyst for growth
  • Market optimism tied to potential US-Iran peace negotiations

The benchmark Kospi index climbed to a new intraday record on Tuesday, gaining as much as 2.2%. This surge marks a sharp reversal from Monday's losses, which were triggered by escalating tensions involving Iran. The rally is primarily driven by a resurgence in the artificial intelligence trade, which continues to attract significant capital toward high-performance computing components. This momentum is further bolstered by emerging optimism regarding a potential peace deal between the United States and Iran, effectively easing regional risk premiums. Heavyweight chipmakers Samsung Electronics Co. and SK Hynix Inc. were the primary catalysts for the index's ascent. As critical suppliers to the global AI infrastructure, these firms are benefiting from the extended optimism surrounding AI integration across various industries. The recovery suggests that AI-driven growth narratives are currently outweighing geopolitical volatility in the eyes of equity traders. The rapid erasure of previous losses indicates a strong appetite for risk-on assets within the South Korean market.

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