# Seoul's Kospi Surges 3.8% as Asian Markets Seek Recovery from Tech Sell-off

*South Korean stocks rebounded on Wednesday, with the Kospi up 3.8 percent, as Asian markets attempted to recover from a region-wide sell-off driven by concerns over AI investments and potential US interest rate hikes.*

June 24, 2026 · business

## At a glance

- South Korean stocks rebounded with the Kospi up 3.8 percent.
- Concerns over AI investments and potential US rate hikes drove the sell-off.
- Mixed performance across Asian markets with gains in some and declines in others.
- Oil prices fell amid optimism for an Iran war deal but faced negotiation strains.
- Investors await Micron Technology's earnings for sector demand insights.

South Korean stocks bounced back on Wednesday, with the Kospi rising 3.8 percent to 8,514.66, following a 10 percent collapse the previous day. The rebound came as investors tentatively returned to the market, picking up shares of tech giants SK hynix and Samsung, which had led the previous day's sell-off with 12 percent losses.

## Global Concerns Over AI Investments

The sell-off was driven by growing concerns over the extended valuations of tech firms, particularly those heavily invested in artificial intelligence. Analysts noted that questions over when these firms will see a return on their trillions of dollars invested in AI have added to market uncertainty. Additionally, the prospect of a US interest rate hike following last week's hawkish pivot by the Federal Reserve has further unsettled investors.

## Market Reactions Across Asia

While Seoul saw significant gains, other Asian markets struggled. Tokyo's Nikkei 225 fell 0.4 percent, and Taipei's market also declined. However, there were gains in Hong Kong, Sydney, Singapore, and Manila. The mixed performance across Asia highlights the region's vulnerability to global tech sector trends.

## Oil Prices and Geopolitical Tensions

Oil prices continued to fall, sitting around their lowest levels since the early days of the Middle East crisis. This decline came amid optimism for an eventual deal to end the war in Iran, though early strains in negotiations over the Strait of Hormuz added uncertainty. US Secretary of State Marco Rubio emphasized that Washington would not accept Iranian tolls or fees on the strait, a key point of contention in the talks.

## Looking Ahead

Investors are now turning their attention to the earnings release from US chipmaker Micron Technology, which is expected to provide insights into the state of demand in the sector and the future of the AI rally. The performance of tech stocks and the ongoing geopolitical tensions will continue to influence market movements in the coming days.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/seoul-bounces-asian-markets-recover-rout