Korean stock ETFs rallied sharply, with the CSOP 2x Long Samsung Electronics (07747) jumping 14.07% to HK$52.2, the CSOP SK hynix Daily Leveraged 2x Product (07709) climbing 14.51% to HK$19.73, and the TR Korea (02848) gaining 4.92% to HK$1,608.5.
On the morning of October 21, the Korea Exchange activated the SIDECAR mechanism, temporarily halting program buying on the KOSPI. Earlier, the KOSPI index extended its gain to 4%, with SK hynix and Samsung Electronics both surging. Better-than-expected earnings from tech giants have reignited confidence in AI trading.
Super Micro Computer forecast that its revenue for the quarter ending September 30 would soar 279% year-over-year, about 27% above its previous guidance. SpaceX's AI revenue in the third quarter grew more than ninefold year-over-year to $7.56 billion, becoming the company's largest revenue source for the first time. Elon Musk also stated that the shortage of superintelligent computing power will persist for a long time, and that the payback period for computing power investment could potentially shorten to six months next year.
JPMorgan noted in its latest report that, based on stock price levels and trading indicators, Korean stocks are already quite cheap. However, the notable slowdown in share buybacks by listed companies has been an important reason for the recent decline in Korean stocks. Since late August, buybacks have been the main force supporting the market. Samsung Electronics has completed its buyback program, and SK hynix's buyback is also nearing completion. Meanwhile, investors who favor long-term holdings appear to still be waiting for market volatility to subside before re-entering.
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