星球日报|Jul 21, 2026 07:38
[South Korean Stock Market Rebounds, Closing Up 3.6%, as Leverage-Driven Sell-Off Eases]
Odaily Planet Daily News – The South Korean stock market rebounded on Tuesday as the intense sell-off triggered by the unwinding of leveraged positions began to ease, allowing investors to refocus on the intrinsic strength of this core global market for AI-driven trading. The South Korea KOSPI Index closed up 3.6% at 6,747.95 points, after rising as much as 4.9% intraday. Over the previous two trading sessions, the index had plunged 10.5%. The KOSPI remains deep in bear market territory, down 25% from its record closing high on June 22. However, as regulators take steps to curb leveraged financing products, market attention has shifted back to fundamentals, including sustained strong demand driven by artificial intelligence and an optimistic earnings outlook for memory chip manufacturers. JPMorgan analysts noted, 'The market's fundamental strength remains robust in the coming years.' They maintained an 'overweight' rating on the South Korean market in their regional asset allocation, with a 12-month target of 12,500 points. 'The market should be able to overcome the shock from position unwinding and continue its positive momentum.' (Jin10)
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