South Korean stocks jumped, as the unwinding of leveraged bets that helped drive the benchmark nearly 30% below its peak appeared to be nearing its end. Brokers said the forced selling from margin unwind has largely subsided, easing pressure on the Kospi.

The Kospi rose 1.8% to 2,450, its highest level in three weeks, led by gains in technology and financial shares. Trading volume surged as investors returned to the market, betting that the worst of the margin unwind is over.

Analysts at local brokerages noted that margin debt has fallen to its lowest since early 2023, reducing the risk of further liquidation. Foreign investors turned net buyers for the first time in a month, signaling renewed confidence.

However, some strategists caution that global macroeconomic uncertainties, including U.S. interest rate policy and China's growth outlook, could still trigger volatility.