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Asian Markets Surge as AI Buzz Drives Chip Gains

Financial Times Companies •
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Asian stock markets rebounded sharply Tuesday after a steep sell‑off that rattled chipmakers the day before. The South Korean Kospi surged 8.2 percent, Japan’s Nikkei 225 added 2 percent, and Taiwan’s Taiex climbed 2.8 percent. Samsung Electronics and SK Hynix, which dominate the Korean index, leapt 9.5 percent and 16.4 percent, reversing Monday’s 10.2 and 7.7 percent drops in a dramatic turnaround that capped the day’s volatility.

The rebound follows a modest 0.9 percent rise in the Nasdaq Composite and a 0.3 percent lift in the S&P 500 on Monday, driven by gains from Intel (+11.1 percent), Marvell (+9.6 percent) and Micron Technology (+10 percent). Asian indices, especially the Kospi, have posted record gains this year, doubling nearly since January as investors chase AI‑fuelled growth for tech‑heavy sectors that dominate the region’s market cap.

Volatility has surged, with sidecar trading curbs triggered twelve times this year. Petra Capital’s Chan H Lee attributes the bounce to an oversell on Monday and the weight of Samsung and SK Hynix in the index, noting Micron’s near‑10 percent jump also lifted the Kospi. Investors now eye whether AI hype sustains the upside or sparks another correction in the coming weeks ahead.