U.S. Tech Stocks Drive South Korea's Kospi to Record Rebound Amid AI Trade
South Korea's stock market experienced a significant rebound, marking its sharpest reversal on record. This surge was largely driven by a powerful overnight rally in U.S. technology stocks, following positive earnings reports from major companies like Microsoft, Amazon, and Meta. These reports reinforced expectations of continued robust spending on artificial intelligence infrastructure. The Kospi index, South Korea's benchmark, surged by 14%, setting it on track for its largest one-day jump. The rally was further supported by SK Group Chairman Chey Tae-won's purchase of SK Hynix shares, boosting confidence in the memory chipmaker. Foreign investors played a crucial role in the rally, with short-covering and mechanical rebalancing by leveraged exchange-traded funds amplifying the gains. New cash-deposit requirements for leveraged ETF investors, effective from July 31, also contributed to the market repositioning. 
