South Korea’s Kospi jumps 4% after 31% crash from June peak. What’s ahead?

South Korea's Kospi index jumped 4 percent to 6,764 on Tuesday, snapping a two-session losing streak that had seen a 10 percent crash, led by up to 6 percent gains in chipmakers Samsung Electronics and SK Hynix which together make up over half the benchmark. The index remains nearly 28 percent below its June peak of 9,386, driven earlier by an AI-fuelled surge, and authorities have moved to cool speculation by banning new leveraged ETFs tied to individual stocks. Citi has downgraded South Korea to neutral from overweight citing volatility in AI-linked chip stocks, while remaining overweight on Taiwan and upgrading China in its emerging markets allocation.