Kospi Rebounds Sharply on Chipmakers’ Rally and Renewed Foreign Buying

South Korea’s Kospi index advanced 3.2% on Thursday, marking its third consecutive session of gains. The rally was led by SK Hynix and Samsung Electronics after Alphabet’s increased capital expenditure plans lifted optimism for memory chip demand. Shares in SK Hynix climbed 4% and Samsung Electronics rose 3% in the morning session, reflecting strong investor interest in the chipmaking sector. The recent upswing is attributed to Alphabet’s announcement of higher spending, which has reassured markets about sustained demand for memory products. Alphabet Inc. has reported a robust 24% year-over-year increase in total revenue for the second quarter of 2026, reaching $119.8 billion. The results were headlined by a massive 82% surge in Google Cloud revenue, which totaled $24.8 billion, significantly outpacing analyst estimates of roughly $22.2 billion to $22.8 billion. Alphabet raised its 2026 CapEx outlook to a range of $195 billion to $205 billion, up from a previous call of $190 billion, as it accelerates the build-out of AI data centers. The Kospi’s sharp rebound follows a period of heavy selling, which earlier pushed the benchmark nearly 30% below this year’s peak. Analysts note that the forced liquidation of leveraged positions seems to be abating, bringing stability back to the market. Interest from overseas investors also strengthened, with a notable increase in net foreign purchases of Korean equities. According to exchange data, daily net buying by foreign investors reached its highest point since early May, signaling a reversal from recent outflows.