Why did the KOSPI rebound after its seven-day losing streak?

The rebound followed eased selling in chip stocks and bargain hunting for large-cap technology shares. Investor sentiment also improved after Kevin Warsh expressed optimism about the U.S. economy and artificial intelligence without signaling whether the Federal Reserve would raise rates this month.

How did Kevin Warsh’s comments affect investor sentiment in Seoul?

Warsh’s positive assessment of the U.S. economy and artificial intelligence revived appetite for riskier assets. His comments came as recent U.S. inflation data showed prices rising faster than expected, while he avoided stating whether a rate hike would occur this month.

What were the main market figures in Seoul after the rebound?

The KOSPI gained 113.83 points, or 2.05 percent, to close at 5,668.05, after climbing as high as 5,809.94. The Korean won also traded higher against the U.S. dollar.

Seoul stocks rebound over 2% on eased chip rout, Fed bets

Listen

Summary

Seoul stocks rebounded 2.05 percent in Seoul on Friday, ending a seven-day losing streak as chip selling eased and expectations about Federal Reserve rate hikes shifted. The KOSPI closed up 113.83 points at 5,668.05 after reaching 5,809.94. Investors bought large-cap technology shares, while the won strengthened against the U.S. dollar. Fed Chair Kevin Warsh’s optimism about the U.S. economy and artificial intelligence supported appetite for riskier assets.

Key Facts

The KOSPI closed at 5,668.05, while its intraday high reached 5,809.94.
Large-cap technology shares attracted bargain hunters after the country’s leading chipmakers fell more than 10 percent in the previous session.
Kevin Warsh refrained from indicating whether the Federal Reserve would raise rates this month during the 2026 IMF-World Bank annual meetings in Bangkok.
Warsh described artificial intelligence as probably the most consequential change to the U.S. and global economy in his lifetime.

By Yonhap

Published Oct 16, 2026 9:21 am KST
Updated Oct 16, 2026 3:54 pm KST

The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Friday. Yonhap

Seoul stocks rebounded by more than 2 percent Friday to snap their seven-day losing streak on an eased chip rout and bets on the Federal Reserve's rate hikes.

The Korean won was trading higher against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 113.83 points, or 2.05 percent, to 5,668.05, after rising as high as 5,809.94.

Investors went bargain hunting for large-cap tech shares, particularly the country's top chip makers, which tumbled over 10 percent the previous session.

During the 2026 IMF-World Bank annual meetings in Bangkok, Fed Chair Kevin Warsh voiced optimism for the U.S. economy and its strength while he refrained from signaling whether there will be a rate hike this month.

Warsh's comments revived appetite for risky assets as a series of recent U.S. inflation data signaled that prices are rising at a faster pace than expected.

Investor sentiment was also lifted by the Fed chair's expression of optimism for artificial intelligence (AI), which he described as "probably the most consequential change to the U.S. and the global economy in my lifetime."

"It is meaningful that the Fed Chair maintained a positive assessment of the AI industry's structural growth, despite concerns over growing credit risks and funding burdens at such companies," Seo Sang-yong, an analyst at Mirae Asset Securities, said.

Explore More