South Korea’s KOSPI index surged 4.8% on Friday, rebounding from a record 6.3% drop triggered by escalating Middle East tensions. Gains in semiconductor giants like Samsung Electronics and SK Hynix drove the recovery, with global tech stocks also rebounding as volatility eased.
- KOSPI surged 4.8% after a record 6.3% selloff on March 4, 2026
- Samsung Electronics rose 7.2%, SK Hynix gained 8.5% on chipmaker momentum
- CBOE Volatility Index (^VIX) dropped 14.3% from a peak of 38.7 to 33.1
- TSM climbed 5.6%, NVDA advanced 4.1% amid renewed AI chip demand optimism
- Financials sub-index rebounded 5.3%, reflecting broader market repositioning
- Tech sector accounts for over 35% of KOSPI’s market cap, making it a key driver
South Korea's equity markets staged a sharp recovery Friday, with the KOSPI index closing up 4.8% after plunging 6.3% the previous trading day—the largest single-day drop in its history—amid fears over Middle East conflict disrupting global supply chains. The rebound was led by a strong rally in semiconductor stocks, as Samsung Electronics rose 7.2% and SK Hynix gained 8.5%, benefiting from improved sentiment in global chip markets. The recovery coincided with a decline in the CBOE Volatility Index (^VIX), which fell 14.3% from its intraday peak of 38.7 to close at 33.1, signaling reduced short-term market fear. The tech sector’s resurgence was amplified by positive momentum in global peers, with Taiwan Semiconductor Manufacturing (TSM) rising 5.6% and Nvidia (NVDA) climbing 4.1% on renewed optimism about AI-driven chip demand. Investors appeared to reassess risk exposure, shifting from defensive positions to cyclical equities amid signs that geopolitical tensions had stabilized. Financials, which had led the selloff, also rebounded, with the KOSPI Financials sub-index gaining 5.3%. The rally underscores the market’s sensitivity to both geopolitical shocks and semiconductor sector dynamics. With South Korea’s tech sector representing over 35% of the KOSPI’s weight, the performance of chipmakers remains a key barometer for broader equity trends. The market’s swift recovery suggests strong underlying investor confidence, despite heightened regional uncertainty.