South Korea's stock market rebounded after falling nearly 10% the previous day. Company financing costs
The recovery came as investors turned their attention back to the financial performance of semiconductor chipmakers, which are seen to still have strong growth prospects.
The Kospi index, the main benchmark for South Korea's stock market, rose as much as 4.2% in trading on Wednesday.
Among the main contributors to the rise was Samsung Electronics, which jumped around 10% after reports said the company might announce a share buyback program.
In addition, SK Hynix, another major chipmaker in the country, also rose more than 5%.
A day earlier, South Korea's stock market suffered one of the biggest falls in history as investor sentiment towards the development of artificial intelligence (AI) technology began to decline.
The concerns prompted many investors to aggressively sell their holdings, putting significant pressure on the market.
However, most analysts believe the drop is more of a market correction after a period of too rapid an increase than a sign of a prolonged decline.
According to Morgan Stanley analysts, the business fundamentals of memory chip manufacturers and AI-related companies are still strong as their products continue to play an important role in the development of AI technology.
However, they admit that the market may need some time to stabilize after a long period of increase.
Now, investors' attention turns to the financial results of the US chip company, Micron Technology, which is expected to be an important indicator of the direction of the global semiconductor industry.
Samsung is scheduled to announce preliminary second-quarter results in early July. In other developments, MSCI maintains South Korea in the emerging market category, in line with the expectations of most market observers.
