KOSPI rebounds nearly 5% after sharp fall, buy sidecar triggered

South Korea's KOSPI index staged a dramatic recovery, surging nearly 5% to surpass the 7800 mark on June 9, a day after experiencing a steep 8% decline. The benchmark index opened 2.85% higher and continued its upward trend throughout the morning.

The KOSPI200 futures index also saw a significant rally, exceeding a 5% rise and triggering a "buy sidecar" at 9:12 AM. This mechanism halts program buy orders for five minutes when the index rises more than 5% for over a minute, reflecting the market's volatility. This rebound mirrors a similar pattern seen in March when the KOSPI plummeted 12.06% on March 4, only to surge 9.63% the following day.

Major companies listed on the stock exchange also experienced gains. Samsung Electronics rose 3.21% to 305,000 won, and SK Hynix climbed 6.33% to 2.032 million won, both reclaiming key price levels. Naver, which had been the sole gainer among top stocks the previous day due to news about Nvidia CEO Jensen Huang, fell 7.17%.

The market's recovery appears to be influenced by a rebound in US stock markets, particularly in AI semiconductor-related sectors. Broadcom saw a 2.82% increase, and semiconductor giant Micron Technology jumped 9.87%. The Nasdaq Composite rose 0.86%, and the S&P 500 gained 0.30%.

Similarly, the KOSDAQ index opened 2.89% higher at 937.69 and also triggered a buy sidecar due to fluctuations in the KOSDAQ150 futures and index. The won-dollar exchange rate opened lower at 1529.4 won per dollar, down 5.6 won from the previous day's close, following verbal intervention by South Korea's foreign exchange authorities.