KOSPI and KOSDAQ Surge Over 1.6% as Samsung, SK Hynix Lead Chip Rally

South Korean equities staged a strong rebound on August 26, with both the KOSPI and KOSDAQ closing sharply higher after a choppy start to the session. The benchmark KOSPI Composite Index advanced 1.69%, or 113.70 points, to finish at 6,856.44, having opened lower at 6,727.25 before climbing as high as 6,887.18 during the day. The tech-heavy KOSDAQ followed a similar path, opening down at 824.77 before rallying to close at 827.15, a gain of 1.70%.

Semiconductor giants were at the heart of the recovery. Samsung Electronics jumped 2.53%, adding 6,500 won to close at 263,500 won, with its market capitalization reaching roughly 1,697.83 trillion won. The stock swung between an intraday low of 255,500 won and a high of 266,500 won on volume of more than 14.7 million shares. Given Samsung's heavy weighting in the KOSPI, its rally played an outsized role in lifting the broader index.

SK Hynix also closed in positive territory, though its 0.66% gain was more modest than Samsung's. Shares of the memory chipmaker rose 11,000 won to end at 1,689,000 won, giving it a market value of about 1,223.08 trillion won. Trading volume for SK Hynix stood at over 1.18 million shares as the stock moved between 1,662,000 won and 1,717,000 won during the session.

Analysts pointed to two main drivers behind the rally: investors positioning ahead of closely watched global artificial-intelligence chip earnings, and a decline in crude oil prices that eased inflation worries across Asian markets. Buying interest extended beyond the two chip heavyweights, with biotechnology names such as Alteogen and battery-related stocks including EcoPro and EcoPro BM also attracting demand on the KOSDAQ.

Not every sector joined the advance. Several pharmaceutical stocks slipped even as the broader healthcare sector gained ground, while some small-cap technology names remained volatile following recent sharp swings. Battery stocks saw mixed trading, defensive shares lagged the tech-led rally, and names that had surged in prior sessions faced profit-taking.

Market watchers cautioned that volatility is likely to persist in the near term. With foreign fund flows, global chip demand, oil prices and broader risk sentiment all in flux, investors will be watching closely to see whether Wednesday's rebound marks the start of a sustained recovery or another short-lived bounce in an already turbulent year for Korean equities.