Svmuu News: South Korea’s stock market rebounded on Tuesday as the sharp sell-off triggered by the unwinding of leveraged positions began to ease, allowing investors to refocus on the underlying strength of this market, which lies at the heart of global AI trading.South Korea’s KOSPI index closed up 3.6% at 6,747.95 points, having risen as much as 4.9% during the session. Over the previous two trading days, the index had plummeted 10.5%.The KOSPI remains deep in bear market territory, down 25% from its all-time closing high set on June 22.However, as regulators have taken steps to curb leveraged financing products, market focus has shifted back to fundamentals, including sustained strong demand driven by artificial intelligence and the continued optimistic earnings outlook for memory chip manufacturers.
JPMorgan ChaseAnalysts noted, “The market’s fundamentals remain strong for 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 weather the shock from position unwinding and continue its positive trend.” (Jin Shi)