After a sharp sell-off, South Korea's stock market rallied as concerns about overspending on artificial intelligence eased, sending the country's chip shares higher. The benchmark index jumped 15 Percent in a volatile session, reversing recent losses driven by fears of excessive capital expenditure on AI infrastructure.

Investors welcomed signs that major technology companies may moderate their AI investment pace, reducing pressure on semiconductor supply chains. The rebound was led by heavyweight chipmakers, which had borne the brunt of the previous sell-off.

Market participants noted the extreme volatility reflects lingering uncertainty about AI demand sustainability and global monetary policy. While the surge recouped significant ground, analysts caution that directional clarity depends on upcoming earnings guidance and macroeconomic data.