South Korea's benchmark Kospi index entered a technical bull market on Thursday as the broader AI trade rebounded and traders pushed back expectations of a Federal Reserve rate hike after in-line U.S. inflation data. Kospi climbed as much as 4.8% to a three-week high, rebounding 31% from its July 29 low, with chip giants Samsung and SK Hynix leading gains as their Seoul-listed shares rose 4.9% and 5.9%, respectively. Recent tech earnings have pointed to continued demand for AI infrastructure, fueling a rally in global chip stocks, and Saxo investment strategist Ruben Dalfovo said the latest results from CoreWeave, Nebius and Supermicro point in the same direction: orders are strong, capacity is scarce and growth remains rapid. Meanwhile, the tame July CPI report and last week's jobs report shock have lowered expectations of a rate hike next month, with Fed funds futures traders now pricing in another pause in September and 42.9% odds of a hike in October, according to CME FedWatch.
