Semiconductors Trigger Short Squeeze: Kospi Surges Nearly 6%, Kioxia and SK Hynix Jump 9%, SoftBank and Samsung Rally Together

TradingKey - Japanese and South Korean stock markets extended their gains, with the KOSPI surging nearly 6% and the Nikkei 225 rising nearly 2%. Kioxia and SK Hynix jumped about 9%, while Samsung Electronics and SoftBank followed the upward trend.

During the Asian session on July 22, Japanese and South Korean stock markets extended their strong rebound from the previous day, both climbing higher after the opening bell. Among them, the Korea Composite Stock Price Index (KOSPI) surged 5.95%, strongly breaking through the 7,000 level to stand temporarily at 7,149.23 points;

Samsung Electronics rose 5.41%, returning to the 270,000 won level to trade temporarily at 273,000 Korean won; SK Hynix jumped 8.66%, reclaiming the 1.9 million won level to stand temporarily at 1,995,000 Korean won.

KOSPI Index Chart, Source: TradingView

Japanese stocks also opened higher and continued to rise, with the Nikkei 225 Index up 1.76% to stand temporarily at 67,396.62 points; heavyweight stocks rose across the board, as Kioxia surged 9.07% to temporarily trade at 66,600 yen, and SoftBank climbed 4.12% to approach the 6,000 yen level, temporarily trading at 5,988 yen.

Following yesterday's sharp rally in Japanese and South Korean stock markets, market confidence has improved, and short-term capital continues to flow back into tech stocks. More importantly, the three major U.S. stock indices rose in unison overnight, with the Philadelphia Semiconductor Index jumping over 5%, and the stabilization of tech stocks drove buying interest back into Asian AI and semiconductor sectors.