South Korea's Kospi swings from bear to bull-market territory in just over a month on AI trade

Investors are experiencing a rapid shift in South Korea's stock market, which has entered bull-market territory after a brief bear market. The Kospi index has surged, with Korean stocks rising 22% in 10 days. This shift is attributed to a rally in the chip sector, fueled by AI trade. The market's rapid recovery is driven by significant gains in semiconductor stocks.

Samsung and SK Hynix shares have rallied, with Temasek reportedly considering investments in these companies. Memory stocks, including SK Hynix and SanDisk, have also seen substantial gains. Intel, Coherent, and Micron are among the most active premarket stocks in US trading. The bull market is supported by a deepening memory shortage, which has boosted stocks like SK Hynix and SanDisk.

The Kospi's entry into bull-market territory is noted by multiple outlets, including MarketWatch, Yahoo Finance, and the Wall Street Journal. Bloomberg and CNBC have also covered the market's stunning comeback, with CNBC questioning the longevity of the bull market. The sustainability of this bull market remains an open question. While the current rally is driven by AI trade and semiconductor gains, the long-term factors influencing the market's direction are not yet clear.