South Korea's Kospi Rebounds Nearly 5% to Record After Chip Selloff

South Korea's benchmark Kospi index rebounded strongly on Friday, climbing about 5% to around 8,028 and reaching a record high, after a steep chip-driven selloff earlier in the week. The recovery was fuelled by softer-than-expected US jobs data, which eased worries that the Federal Reserve would raise interest rates soon and lifted appetite for riskier assets across Asia. Technology and semiconductor shares, which had led the earlier decline as a global chip selloff spread, bounced back sharply as sentiment improved. The rally mirrored gains across the region, with Japan's Nikkei and other Asian markets also advancing, while the MSCI Asia-Pacific index outside Japan rose more than 2%. South Korean equities have been among the world's strongest performers in 2026, powered by an artificial intelligence investment boom that has driven record semiconductor exports. However, the swings this week highlighted how sensitive the market has become to shifts in the technology cycle and global rate expectations, with heavy reliance on chipmakers leaving the index exposed to sudden reversals in sentiment.