Japan and South Korea Stocks Close Higher in Deep V: Nikkei 225 and KOSPI Escape From the Brink, Samsung, SK Hynix and SoftBank Lead Tech Stocks Rally 3%

TradingKey - Japanese and South Korean stock markets stage a dramatic "V-shaped rebound," with the KOSPI and Nikkei 225 closing slightly higher, while Samsung, SK Hynix, SoftBank, and Kioxia all gained around 3%.

During the Asian trading session on July 14, Japanese and South Korean stock markets experienced an extremely tense "long-short shakeout" and a "post-aftershock bottoming out and rebound." Both markets opened lower in the morning session and plunged further intraday under the shadow of US-Iran tensions and overnight losses in US equities, but later staged a resilient rally to close higher, bolstered by a strong influx of oversold buying and bargain-hunting capital.

The KOSPI index once plummeted uncontrollably by over 5% around midday, hitting an intraday low of 6,448.86 points, its lowest level since April 27, but ultimately closed up 0.73% at 6,856.84 points, recovering some of yesterday's losses; Samsung Electronics closed up 3.34% at 263,000 won, and SK Hynix rose 3.69% to 1,913,000 won.

KOSPI index chart, Source: TradingView

The Nikkei 225 Index also opened lower today, at one point dropping nearly 1,000 points intraday to a one-month low of 66,268.60 points, before late-day bargain-hunting led it to close up 0.74% at 67,743.45 points; Kioxia rose 2.98% to close at 69,100 yen, and SoftBank climbed 3.3% to 6,574 yen.

SoftBank stock price chart, Source: TradingView

Today's "V-shaped rebound" in Japanese and South Korean stock markets indicates that after consecutive sharp drops, technical indicators have signaled extremely oversold conditions, and short-term bargain-hunting flows are highly active. However, this does not mean the correction has ended. This week, ASML ( ASML) earnings, US CPI data, and Fed Chair Warsh's congressional testimony represent three major blockbusters set to detonate in succession, and the market could still face severe volatility over the next 48 hours.