Japan, South Korea Stocks Rally as KOSPI Posts Record 18% Gain; SK Hynix Hits 30% Limit, Samsung Soars 27%

TradingKey - On July 31, Japanese and South Korean stock markets staged a historic rebound. The South Korea Composite Stock Price Index (KOSPI) surged 17.91% to close at 6,595.45 points, marking its largest single-day gain since the index's inception. Meanwhile, Japan's Nikkei 225 Index closed up 4.03% at 64,362.02 points, recouping some of its losses following recent consecutive corrections.

Source: TradingView

SK Hynix closed up 29.95% at 1,718,000 won (approximately $1,240), briefly hitting its 30% daily limit during intraday trading and setting its largest single-day gain since listing. Samsung Electronics rose 26.81% to close at 262,500 won (approximately $190), with its market capitalization returning to $1.2 trillion.

Source: TradingView

Japanese tech stocks also delivered a strong performance, with Kioxia soaring 17.72% to close at 46,500 yen (approximately $284), while SoftBank Group rose 13.80% to close at 5,260 yen (approximately $32).

The South Korean stock market had previously experienced severe declines for two consecutive days. On July 28 and 29, triggered by concentrated sell-offs in the semiconductor sector, the Korea Exchange activated circuit breakers for two consecutive trading days, dragging market sentiment to freezing point.

The rapid inflow of capital in this round made the hard-hit leading chipmakers the vanguard of the rebound, driving the KOSPI to its largest single-day gain in history.

However, in terms of monthly performance, the South Korean stock market has yet to fully recover its losses. In July, the KOSPI fell 22.19% cumulatively, recording its largest monthly decline since the 1997 Asian financial crisis and second only to the historical record of 27.2% in October 1997, with the index still down nearly 30% from its June high.

Meanwhile, despite the sharp rebound on the 31st, Samsung Electronics still recorded a cumulative decline of 21% in July, while SK Hynix fell 35% for the month.