South Korea's KOSPI index roared back Friday, surging 15.13% to close at 6,440.14 — its biggest single-day jump since at least 2008. The rebound came after back-to-back circuit breakers on July 28 and 29 had halted trading and wiped out 864.58 trillion won in market value. The index gained 846.58 points from Thursday's close of 5,593.56.
A buy-side sidecar was triggered on the KOSPI at 9:06 a.m., suspending program trading for five minutes. The KOSDAQ index rose 8.91% and also triggered a sidecar after hitting an intraday high of 693.81.
What sparked the rally
The turnaround was fueled by strong earnings from U.S. tech giants. Microsoft rallied 16% after Azure growth beat forecasts, and Amazon jumped over 9% in extended trading on stronger-than-expected Q2 revenue. That lifted U.S. markets: the Nasdaq climbed 2.78%, the S&P 500 added 1.66%, the Philadelphia semiconductor index soared 8.2%, and the iShares Semiconductor ETF (SOXX) gained more than 8%.
Asian markets followed. In Tokyo, Advantest surged 17.92%, Tokyo Electron climbed 9.67%, and SoftBank Group rose 15.12%. The Nikkei 225 added 5.35%, while the Topix gained 2.32%.
Chip stocks lead the charge
South Korea's heavyweight semiconductor names powered the KOSPI's recovery. SK Hynix jumped 27.69% to 1,688,000 won. Samsung Electronics climbed 21.74% to 252,000 won. The Philadelphia semiconductor index's 8.2% surge and SOXX's 8% gain signaled broad investor appetite for chipmakers.
The scale of the prior rout
Before Friday's session, the KOSPI had fallen more than 33% in July, making it the worst crash ever for the index. The two sessions on July 28 and 29 alone saw 864.58 trillion won evaporate. Circuit breakers were triggered as selling overwhelmed the market.
Still far from the peak
Even after Friday's record surge, the KOSPI trades roughly 31% below its June record of 9,385.59. The 15% gain is the index's largest single-day jump since at least 2008, but the road back to pre-crash levels remains long. Investors will watch next week for further U.S. earnings and any signs of sustained buying in Seoul.
