South Korea KOSPI climbs 5% to 7,100 on July 22

South Korea's benchmark KOSPI index surged more than 5% in early trading on Wednesday, July 22, 2026, reclaiming the 7,100 level in a powerful rebound led by technology stocks. The rally extended gains from the previous day, when the index jumped 3.6%, signaling a potential stabilization after a steep, AI-driven selloff that had pushed the market into a correction.

The recovery was broad-based, with semiconductor giants Samsung Electronics and SK Hynix leading the advance for a second consecutive session. These stocks, which carry heavy weight in the index, had been battered in recent weeks by investor concerns over stretched valuations tied to artificial intelligence spending. The rally follows a period of intense volatility where the KOSPI fell more than 30% from its peak in late June, including a drop of roughly 10% over just two trading sessions earlier in the week.

Market analysts attributed the sharp reversal to a combination of factors. A technical rebound from oversold conditions attracted bargain hunters, while improved global sentiment, particularly from a strong session on Wall Street, provided a catalyst. Foreign investors and institutions were net buyers during the...