South Korea's Kospi Rebounds 3.6% as July Chip Exports Surge

South Korea's benchmark Kospi index rebounded strongly on July 21, rising 3.56% to 6,747.95 and recovering much of the ground lost during a semiconductor-led selloff earlier in the month, when the index had plunged more than 6% in a single session amid a global chip rout and concerns over AI valuations. The recovery was supported by fresh trade data showing exports jumped 52.3% in the first 20 days of July, driven by a roughly 180% surge in semiconductor shipments as artificial-intelligence demand stayed robust, bolstering confidence in the sector's earnings outlook. Financial and technology heavyweights led the advance, including gains in SK Square, KB Financial Group and Shinhan Financial Group. The rebound also followed the Bank of Korea's decision on July 16 to raise its benchmark interest rate by 25 basis points to 2.75%, marking the start of a new tightening cycle aimed at containing inflation and financial-stability risks. Lingering tensions in the Middle East kept some investors cautious, though reports of renewed mediation efforts between Iran and the United States helped improve risk appetite and supported the market's recovery.