KOSPI Rebounds by 800 Points in One Day; 'Fear Index' Hits Record High

[Anchor]

The KOSPI has recovered the 8,000-point mark just one day after the shock of yesterday's (June 8) sharp decline. However, the volatility index has also soared to an all-time high. Experts are warning that stock prices may continue to fluctuate significantly for the time being.

Reporter Min Gyeong-ho has the story.

[Reporter]

The KOSPI opened with a surge of over 2.8%, or 200 points, compared to the previous day.

A sidecar (program trading curb) was triggered early in the session, and the upward momentum strengthened after 11:30 a.m.

The index ultimately closed at 8,096 points, up 8.18% from yesterday, marking the largest single-day point gain in history.

This effectively reversed 90% of yesterday's losses in just one day.

Samsung Electronics and SK Hynix led the rally, jumping approximately 9% and 15%, respectively.

The rebound was largely driven by the surge in U.S. semiconductor stocks overnight, as investor sentiment improved following announcements from Iran and Israel regarding a halt in attacks.

However, experts predict that a volatile market will persist until the second-quarter earnings announcements of major U.S. tech companies, including semiconductor firms, next month.

The concern is that because the rise in semiconductor stock prices has been so steep and rapid, skepticism regarding whether they have reached their peak is spreading through the market.

[Lee Jin-woo / Head of Research Center, Meritz Securities: The momentum has reached a temporary conclusion. It is likely that the pattern of the market feeling anxious and then relieved will repeat for some time.]

Starting with the U.S. Consumer Price Index (CPI) release tomorrow night (June 10), a series of major events are scheduled, including interest rate decisions in Japan and Europe.

[Lee Sang-heon / Senior Research Fellow, iM Securities: There are aspects that could hint at the possibility of tightening policies... Concerns over liquidity contraction could be reflected, which may bring about unfavorable volatility in the stock market.]

Amid the repeated sharp fluctuations, the KOSPI 200 Volatility Index, known as the "Korean fear index," has reached 91.23, the highest level on record, surpassing even the levels seen at the outbreak of war.

Experts advise caution in trading and specifically warn against investing in leveraged products, which are subject to the "negative compounding effect" where principal cannot be maintained during periods of high volatility.

(Video Editing: Kim Jun-hee)
※ Please note: This article was translated by AI and may contain errors.