SEOUL, Feb 03 (AJP) - Asian equity markets staged a decisive rebound Tuesday, shaking off jitters dubbed the “Warsh Shock,” as South Korea’s benchmark KOSPI surged nearly 7 percent to a fresh all-time high and fueling a regionwide rally.
The sharp recovery followed gains on Wall Street after U.S. purchasing managers’ index data returned to expansion for the first time in a year, easing concerns about an economic slowdown. Market sentiment also improved as investors reassessed initial fears that Federal Reserve chair nominee Kevin Warsh would take an aggressively hawkish stance, increasingly viewing them as overblown.
The Korean won strengthened alongside equities, with the dollar falling as much as 10.5 won to 1,443 won from the previous close. Meanwhile, a rapid rotation into risk assets pushed the yield on the 10-year Korean government bond up 5.8 basis points to 3.661 percent.
The KOSPI soared 6.84 percent to close at 5,228.08, recouping the previous session’s losses and setting a new intraday and closing record. Hopes that Warsh could emerge as a “hawkish dove” rather than a hardliner helped reignite appetite for equities.
Institutional investors led the rally with a net purchase of 2.17 trillion won ($1.5 billion), while foreign investors added 705 billion won. Retail investors, who had fueled buying the previous day, took profits, unloading 2.94 trillion won.
Chip behemoths roared on. Samsung Electronics jumped 11.37 percent to a record 167,500 won, while SK hynix climbed 9.28 percent to 907,000 won, both marking fresh 52-week highs.
Hyundai Motor, the third-largest company by market capitalization, rose 2.82 percent to 491,500 won. LG Energy Solution, which has struggled with sluggish earnings, gained 2.9 percent to close at 391,000 won.
Naver, however, lagged the broader rally, edging up just 0.37 percent to 269,000 won as investors stayed on the sidelines ahead of its earnings release expected around Feb. 5.
The tech-heavy KOSDAQ advanced 4.19 percent to 1,144.33, erasing the previous session’s sharp losses, though it fell short of a new record.
Mirae Asset Venture Investment was the day’s standout performer, hitting the daily 30 percent upper limit to close at 22,100 won. The surge followed news that Elon Musk’s SpaceX had acquired xAI, benefiting Mirae Asset Venture, a major investor in SpaceX.
In Japan, the Nikkei 225 snapped its losing streak, jumping 3.92 percent to close at 54,720.66, also a new all-time high.
A rebound in U.S. technology stocks lifted Japanese semiconductor shares. Advantest rose 7.1 percent, Disco gained 7.4 percent, Tokyo Electron climbed 4.8 percent, and Ibiden surged 8.6 percent, capping a strong day for the chip sector.
Toyota Motor advanced a more modest 1.67 percent to 3,594 yen, as much of its strength as the world’s top auto seller in 2025 was already priced in.
Elsewhere in the region, Taiwan’s TAIEX rose 1.81 percent to 32,195.36. MediaTek surged 5.28 percent after reporting better-than-expected earnings, while TSMC gained 2.0 percent.
Chinese markets also rebounded broadly, with the Shanghai Composite up 1.3 percent and the Shenzhen Composite climbing 2.2 percent.
Hong Kong’s Hang Seng Index, however, lagged peers, inching up just 0.13 percent to close at 26,810, weighed down by dollar strength and turbulence in cryptocurrency markets.
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