Korea’s KOSPI Surges 11% in Historic Rebound, Outpacing Crypto

South Korea's KOSPI index experienced a historic reversal, surging over 11% on Thursday, one day after suffering its worst single-session loss in history. This volatility is linked to Seoul's high sensitivity to Middle East instability, as the nation imports over 70% of its energy from the region. The initial crash was triggered by fears over the closure of the Strait of Hormuz following US-Israel strikes on Iran. The rebound was fueled by stabilizing oil prices (Brent at $81.40) and reports of back-channel contacts between Washington and Tehran. Major stocks like Samsung Electronics and SK Hynix recovered significantly, attracting over 1.3 trillion won from foreign and retail investors in one morning. Analysts are cautiously optimistic, suggesting the selloff front-loaded the war risk premium, with some setting a near-term KOSPI target of 5,800. This sharp equity recovery threatens to reverse recent crypto inflows, as Korean retail capital, which had briefly supported digital assets during the crash, is now flowing back into stocks, evidenced by the won strengthening and absorbing potential crypto gains.

(Source：BeInCrypto)