Foreigners Turn Buyers After Eight Sessions as Kospi Rises 2.05% to Close Above 5,600

South Korea’s Kospi rebounded on Oct. 16, snapping a seven-session losing streak. Foreign investors turned net buyers for the first time in eight trading days, fueling expectations of improved market flows, while gains on Wall Street and easing concerns about further rate hikes supported the recovery. Still, the latest rebound may prove to be no more than a technical bounce after the recent selloff rather than the start of a trend reversal.

According to EpicAI, an artificial intelligence-based investment information platform, the Kospi closed at 5,668.05, up 113.83 points, or 2.05%, from the previous session. The index opened at 5,653.99, up 99.77 points, or 1.80%, and at one point climbed 2.60% to 5,809.94.

The Kosdaq closed at 794.78, up 33.96 points, or 4.46%. The junior market opened at 772.17, up 11.35 points, or 1.49%, and briefly reclaimed the 800 level after rising as much as 6.14% to 807.54. Amid the sharp advance, the exchange triggered a buy-side sidecar in the Kosdaq market at about 12:55 p.m.

Most large-cap stocks finished higher. Samsung Electronics rose 2.62% to 215,500 won, while SK Hynix gained 0.79% to 1.272 million won. A day earlier, when the benchmark tumbled, Samsung Electronics fell 9.48% and SK Hynix dropped 11.06%.

Gains were more pronounced in sectors less directly tied to the artificial intelligence industry. Hyundai Motor rose 5.58% to 312,000 won. Samsung Biologics gained 4.09%, Samsung Life Insurance advanced 4.61%, Samsung C&T climbed 7.10%, Hanwha Aerospace jumped 7.77%, and Celltrion added 6.53%. On the Kosdaq, biotech names including Alteogen, up 9.60%, and PharmaResearch, up 7.54%, also surged.

On the Kospi, foreign investors ended an eight-session run of net selling that lasted from Oct. 2 through Oct. 15. As of 3:35 p.m., they were net buyers of 342.8 billion won. Retail and institutional investors were net sellers of 484.6 billion won and 683.3 billion won, respectively. On the Kosdaq, institutions were net buyers of 167.5 billion won, while foreigners and retail investors were net sellers of 90.3 billion won and 90.5 billion won, respectively.

The rally followed a rebound in U.S. stocks the previous day, after indexes erased intraday losses to finish higher, helping lift sentiment in South Korea. On Oct. 15, the Dow Jones Industrial Average rose 1.08%, the S&P 500 gained 0.33%, and the Nasdaq added 0.08%. Retail sales data pointing to softer U.S. consumption and a decline in Treasury yields eased concerns over additional rate hikes.

Concerns about credit risk at AI infrastructure companies also eased somewhat after Nvidia Chief Executive Officer Jensen Huang gave a positive assessment of CoreWeave’s competitiveness. CoreWeave shares rose about 5.9%. “Given the steep decline over seven straight sessions, expectations for a technical rebound have increased significantly,” Han Ji-young, an analyst at Kiwoom Securities, said.

Kang Kyung-ju, Hankyung.com reporter, memory@hankyung.com