Key Takeaways
- The KOSPI index mounted a 5.76% recovery on Friday, settling at 8,088.34 after touching 7,300 during intraday trading
- SK Hynix climbed 10.88% while Samsung Electronics advanced 8.22%, clawing back significant portions of Thursday’s steep declines
- News emerged that AI firm Anthropic is negotiating with Samsung for custom chip development, boosting investor sentiment
- Market experts characterize Thursday’s downturn as excessive reaction to Meta’s surplus computing capacity plans
- SK Hynix unveiled a $29.4 billion equity raise paired with forthcoming Nasdaq ADR registration to broaden international investor access
South Korean equities delivered a powerful rebound Friday following one of the market’s most brutal single-session declines in recent history.
The KOSPI benchmark touched an intraday low of 7,300 during morning hours before surging to finish 5.76% higher at 8,088.34. Trading had been suspended Thursday via circuit breaker activation after the index plummeted 7.89%.
Semiconductor Giants Drive Market Recovery
SK Hynix soared 10.88% Friday, rebounding from Thursday’s devastating 14.6% collapse. Samsung Electronics posted an 8.22% gain, recovering a portion of its previous 9.1% decline.
These semiconductor powerhouses represent the KOSPI’s heaviest weightings. Their performance directly dictates broader index direction.
Emerging reports indicating Anthropic’s discussions with Samsung regarding custom chip development provided additional upward momentum Friday.
American memory maker Micron experienced a 5.5% Thursday decline, finishing at $975.56. The stock maintains a year-to-date gain exceeding 166% as memory semiconductors remain central to AI infrastructure investment themes.
The KOSPI has posted approximately 92% gains throughout 2026, establishing itself as the globe’s top-performing major equity benchmark. This significantly outpaces the S&P 500’s 9.3% advancement during the identical timeframe.
Market Analysts Dismiss Thursday’s Panic as Excessive
The catalyst behind Thursday’s selloff emerged from reports indicating Meta intended to monetize excess AI computing infrastructure. Market participants interpreted this as signaling peak AI capital expenditure.
Numerous Korean brokerage firms challenged this interpretation.
Samsung Securities analyst Kim Joong-han emphasized that computing resources face “absolute shortage” conditions and suggested the entire sector, Meta included, likely confronts capacity constraints.
Mirae Asset Securities analyst Kim Young-gun characterized the downturn as “a valid window for bargain buying in semiconductor stocks.”
Mirae Asset projects worldwide big-tech capital expenditures reaching $806 billion this year, representing 73% year-over-year growth. The firm anticipates spending will accelerate another 20%-plus next year.
Aggregate order backlogs revealed by leading technology corporations during Q1 totaled $2.1 trillion, marking 24% quarterly expansion. Approximately $656 billion is projected for revenue recognition within two years.
SK Hynix delivered separate corporate news this week. The company’s board authorized a $29.4 billion secondary equity offering concurrent with planned Nasdaq Global Select Market listing via American Depositary Receipts.
This strategic initiative could expand SK Hynix’s shareholder base while facilitating enhanced U.S. capital market access. Analysts identify dilution and offering absorption capacity as primary concerns.
The next critical milestone arrives July 7, when Samsung plans releasing preliminary second-quarter financial results. Those figures will likely determine whether Friday’s rally sustains or reverses.
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