The benchmark KOSPI stood at 5,704.91 as of 10 a.m., up 2.71 percent from Thursday’s close of 5,554.22. It opened 1.80 percent higher at 5,653.99 and extended its gains.
The rebound offered some relief after seven consecutive sessions of losses that wiped about 20 percent off the benchmark. The index plunged 7.57 percent Thursday alone as selling intensified across technology stocks.
Retail and institutional investors stepped in to buy the dip Friday, purchasing a net 81.9 billion won ($60.9 million) and 169.8 billion won of KOSPI shares, respectively. Foreign investors remained net sellers, offloading 335.8 billion won. Advancers outnumbered decliners 757 to 123.
Samsung Electronics rose 2.50 percent to 215,250 won, while SK hynix gained 3.01 percent to 1,300,000 won. Samsung’s preferred shares advanced 4.49 percent to 166,250 won.
The chipmakers recovered some of their recent losses after concerns over returns on artificial intelligence investment, high U.S. interest rates and intensifying memory-chip competition weighed on their shares.
Overnight gains on Wall Street provided further support, although technology shares barely advanced. The Dow Jones Industrial Average rose 1.08 percent Thursday, while the S&P 500 gained 0.33 percent and the Nasdaq Composite edged up 0.08 percent.
U.S. Treasury yields fell despite a higher-than-expected 1.3 percent monthly rise in September producer prices. The 10-year yield declined to 5.086 percent as investors sought the safety of government bonds.
In Seoul, gains extended beyond the two chipmakers. SK Square, the investment holding company and largest shareholder of SK hynix, rose 0.78 percent to 771,000 won. Electronic components maker Samsung Electro-Mechanics gained 2.06 percent to 1,187,000 won.
Hyundai Motor climbed 2.88 percent to 304,000 won, while KB Financial Group jumped 4.59 percent to 163,900 won. LG Energy Solution rose 0.50 percent to 404,500 won and Samsung Biologics gained 0.40 percent to 1,252,000 won.
The junior KOSDAQ also rebounded after a steep correction. It stood at 772.32 as of 9:18 a.m., up 1.51 percent from Thursday’s close of 760.82. The index had fallen 7.65 percent Thursday and lost about 17.3 percent over the seven sessions beginning Oct. 6.
Foreign investors sold a net 93.0 billion won of KOSDAQ shares, while retail investors bought 91.5 billion won and institutions purchased 2.0 billion won. Advancers outnumbered decliners 1,122 to 514.
Among biotechnology shares, Alteogen jumped 3.98 percent to 222,000 won, while cancer-drug developer HLB fell 0.61 percent to 40,500 won.
Semiconductor equipment makers were broadly higher. Jusung Engineering rose 3.42 percent to 211,500 won and laser-processing equipment maker EO Technics gained 3.19 percent to 436,500 won. Chip-testing component maker Leeno Industrial advanced 2.53 percent to 68,900 won.
Rainbow Robotics rose 1.59 percent to 351,000 won. Battery-material stocks were mixed, with EcoPro gaining 0.37 percent to 81,100 won while cathode-material producer EcoPro BM slipped 0.19 percent to 105,700 won.
In currency trading, the won strengthened to 1,344.0 per dollar from the previous close of 1,344.6.
Elsewhere in the region, Japan’s Nikkei 225 rebounded 1.11 percent to 65,143.36 in morning trading after Thursday’s 4.90 percent plunge. Bargain hunting in technology and semiconductor shares, Wall Street gains and lower U.S. Treasury yields supported sentiment.
Continued foreign selling on both Korean markets, however, left the durability of the rebound in question.
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