South Korea’s Kospi jumped 3.9% after a steep 1.5% dip, driven by sharp moves in Samsung Electronics and SK Hynix. Investors flared over AI earnings uncertainty, pushing the index’s volatility to a record high.

Samsung rallied over 8% after a 3.2% drop, while SK Hynix gained 1% following a 4.5% slide. The rebound mirrored Taiwan’s TSMC decline, which fell 4% amid a Wall Street AI sell‑off linked to potential Fed rate hikes.

Retail traders amplified swings with newly launched single‑stock leveraged ETFs tied to Samsung and SK Hynix. South Korean regulator Lee Chan‑jin later warned the rollout felt rushed, raising concerns over market stability.

Fed chair Kevin Warsh’s shift away from easing signals heightened fears that U.S. AI firms could pull debt to fund capital expenditure, tying their costs directly to U.S. rate moves. Investors now weigh the impact of rising borrowing costs on chipmakers’ growth prospects.