South Korea's KOSPI Stages Sharp Rebound, TSMC Drops 4% as AI Sentiment Continues to Rattle Asian Tech Stocks
Taylor Wilson
Korea's KOSPI closed up nearly 3% Wednesday, led by Samsung's 8% surge, just one day after a 10% crash; TSMC fell 4% the same session — the divergence signals AI-driven conviction is far from settled.
KOSPI swung from a crash to a rally in 24 hours — what happened?
KOSPI plunged 10% Tuesday, triggering a global tech selloff. Wednesday it surged 4% intraday, reversed to -2%, then closed up nearly 3%.
Two chip giants led the rebound: Samsung Electronics rose 8%, SK Hynix gained 1%.
This means → money hasn't left — it is whipsawing between AI-linked assets. Multiple bull-bear flips in a single session show the market has no consensus on AI valuations.
TSMC fell 4% — why did Korea bounce while Taiwan dropped?
Taiwan's benchmark index fell over 2%, with TSMC down 4% as the main drag.
Korea's market has been a global leader since early last year, heavily exposed to the AI supply chain — and it fell the hardest on Tuesday. Wednesday's bounce looks more like a technical snapback from an oversold level.
In plain terms = Korea "fell hardest, so it bounced hardest." TSMC hadn't fully corrected the day before, so capital kept pulling out Wednesday. The two markets moved in opposite directions, but the root cause is the same: investors still cannot agree on what AI assets are worth.
What are U.S. futures and oil prices signaling?
S&P 500 futures edged up 0.2%, suggesting a mildly positive open for U.S. markets Wednesday.
Brent crude slipped about 1% to near $76 a barrel; WTI fell roughly 1% to around $72.
Markets continue to watch the Strait of Hormuz — the narrow waterway between Iran and Oman that typically carries about one-fifth of global oil supply — for shipping-disruption risk.
What comes next?
Whether Korea and Taiwan can stabilize while the AI valuation debate remains unresolved is the key test of this tech-rally's resilience.
This reflects a market that has entered a "confidence matters more than fundamentals" phase — near-term direction hinges on sentiment, not earnings data.
Content is for reference only, not financial advice.