KOSPI Recovers to 8,000-Point Level in One Day, Yet 'Fear Index' Hits All-Time High

[Anchor]

After plunging more than 8% last Monday, the KOSPI surged yesterday (June 9) to reclaim the 8,000-point level. Experts are urging caution, noting that volatile market conditions are likely to continue for the time being.

Report by Min Gyeong-ho.

[Reporter]

The KOSPI opened with a jump of over 2.8%, or more than 200 points, compared to the previous trading day.

A sidecar, a temporary trading halt, was triggered early in the session, and the upward momentum intensified after 11:30 a.m.

The index ultimately closed at 8,096 points, up 8.18% from the previous day, marking a record-high single-day gain of 612 points.

In just one day, the market recouped 90% of the losses seen the day before.

Samsung Electronics and SK Hynix led the rally, surging approximately 9% and 16%, respectively.

The recovery in investor sentiment was largely driven by the announcement that Iran and Israel would cease attacks, which led to a significant jump in the stock prices of U.S. semiconductor companies overnight.

However, experts predict that market volatility will persist until the second-quarter earnings reports of major U.S. tech companies, including semiconductor firms, are released next month.

They point out that skepticism regarding a "peak" in the semiconductor industry is spreading through the market, given the steepness and speed of the recent stock price gains.

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

A series of major events are scheduled, starting with the U.S. Consumer Price Index (CPI) release tonight, followed by interest rate decisions in Japan and Europe.

[Lee Sang-hun / Senior Research Fellow, iM Securities: There are factors that could hint at potential tightening policies... Concerns over liquidity contraction could be reflected in the market, which may lead to unfavorable volatility.]

The KOSPI 200 Volatility Index, often referred to as the "Korean fear index," reached 91.23, an all-time high that surpasses the levels seen when the war first broke out.

Experts advise investors to exercise caution and specifically warn against investing in leveraged products, which can suffer from the "negative compounding effect"—where it becomes impossible to maintain the principal amount during periods of extreme volatility.

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