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The South Korean stock market rebounded on Tuesday, and the sharp sell-off wave previously triggered by the liquidation of leveraged positions began to ease, allowing investors to refocus on the inherent strength of the global AI trading core market. Korea's KOSPI index closed up 3.6% to 6747.95 points, rising 4.9% during the intraday period. The index plummeted 10.5% in the previous two trading days. KOSPI is still mired in a bear market area, down 25% from the historic closing high set on June 22. But as regulators take steps to curb leveraged financing products, the market's focus has returned to fundamentals, including continued strong demand driven by artificial intelligence, and the remaining positive profit prospects for memory chip makers. J.P. Morgan analysts said, “The fundamental strength of the market will remain strong in the next few years.” They maintained an “overrated” rating for the Korean market in the regional asset allocation, with a target point of 12,500 points for 12 months. “The market should be able to overcome the impact of closing positions and continue the positive trend.”

Zhitongcaijing·07/21/2026 07:41:03
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The South Korean stock market rebounded on Tuesday, and the sharp sell-off wave previously triggered by the liquidation of leveraged positions began to ease, allowing investors to refocus on the inherent strength of the global AI trading core market. Korea's KOSPI index closed up 3.6% to 6747.95 points, rising 4.9% during the intraday period. The index plummeted 10.5% in the previous two trading days. KOSPI is still mired in a bear market area, down 25% from the historic closing high set on June 22. But as regulators take steps to curb leveraged financing products, the market's focus has returned to fundamentals, including continued strong demand driven by artificial intelligence, and the remaining positive profit prospects for memory chip makers. J.P. Morgan analysts said, “The fundamental strength of the market will remain strong in the next few years.” They maintained an “overrated” rating for the Korean market in the regional asset allocation, with a target point of 12,500 points for 12 months. “The market should be able to overcome the impact of closing positions and continue the positive trend.”