On Friday local time, the South Korean Composite Stock Price Index (KOSPI) surged nearly 18%, setting a new historical record. Stocks related to artificial intelligence rebounded significantly after a decline earlier in the week.
KOSPI soared at the opening on that day, fluctuated during the trading session, and ultimately rose by 17.9% to close at 6,695.45 points, marking the largest single-day gain ever. South Korean tech giant Samsung Electronics saw its stock price surge by 28%, while storage chip manufacturer SK Hynix witnessed a whopping 30% surge in its stock price.
However, KOSPI still remains significantly lower than its peak of over 9,000 points in June. In the three days leading up to Friday, investors selling off tech stocks caused the index to drop by over 17%, partly due to concerns in the market about an artificial intelligence bubble and intense competition from China.
In Japan, the Tokyo Nikkei 225 Index rose by 4% to 64,362.02 points. Investor SoftBank Group saw a 13.8% surge in its stock price related to OpenAI, while Tokyo Electron, a chip equipment manufacturer, saw a 6.2% increase in its stock price.
Similar trends were observed in the American market. Microsoft’s announcement of quarterly earnings exceeding expectations on Thursday local time led to a rebound in its stock price, with a single-day surge of 15.5%, marking its best single-day performance in nearly 18 years. The market widely believes that Microsoft’s substantial investment in the field of artificial intelligence is translating into profits.
The Nasdaq Composite Index, which includes a large number of artificial intelligence stocks, rebounded by 2.8% after a cumulative 9.8% decline. Traders rushed back into the market to purchase stocks of technology companies.
In contrast, Wall Street’s benchmark S&P 500 Index rose by 1.7%, and the Dow Jones Industrial Average increased by 1.2%.
European stock markets also saw a general upward trend during the morning trading session on Friday local time. The German DAX Index rose by 0.7% to 25,779.53 points; the Paris CAC40 Index increased by 0.9% to 8,559.92 points; and the UK’s FTSE Index rose by 0.5% to 10,935.00 points.
Stephen Innes from SPI Asset Management commented, “The market initially sold off artificial intelligence stocks, and then before most traders had even finished writing obituaries, they began scrambling to purchase the remaining stocks.”