STOCKS | Kospi Rebounds From 2% Loss as SK Hynix Buyback and Local Funds Support Shares

The Kospi recovered an earlier 2% loss and rose as much as 1.6%, supported by an SK Hynix buyback and local fund buying. According to Sina Finance, SK Hynix shares turned higher and gained as much as 3.2% after the company launched a three-month, 2 trillion won share repurchase on Thursday; local funds net bought 518 billion won of Kospi constituents, while foreign investors and retail investors sold. Kiwoom Securities analyst Han Ji-young said last Friday’s sharp Kospi decline appeared excessive and could create opportunities for dip buyers, but added that major U.S. events this week could disrupt markets and investors should prepare for increased volatility. Goldman Sachs analyst Timothy Moe said Korean pension funds recorded their second-largest net purchase on record last Friday, and the Kospi has historically tended to perform well after such buying. The Kosdaq small-cap index rose as much as 1.2%.