South Korean stocks climbed, lifted by heavyweight chipmakers as investors waded back into the artificial intelligence trade following the recent selloff.
The benchmark Kospi jumped more than 5% in early trading Tuesday, as Samsung Electronics Co. and SK Hynix Inc. rose more than 5% each. That followed big gains in US peers Monday, even as Nvidia Corp. slumped on the developing scandal around Jensen Huang.
The rebound got a lift from a decline in oil as President Donald Trump said further strikes on Iran wouldn’t be necessary, and after Anthropic PBC unveiled new AI models ahead of its long-awaited Wall Street debut.
The gains in Korean stocks show investors are ignoring the Huang controversy to “refocus on fundamentals, as the headlines do little to change underlying AI demand or semiconductor earnings prospects,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global.
Following its world-beating rally on the AI trade, Korea’s stock market has borne much of the market backlash. The nation’s key stock index is down more than 40% from its summer peak while Taiwan’s benchmark is down just 16% from a record high earlier this month.