The market for South Korea-focused exchange-traded funds (ETFs) experienced a significant surge during the afternoon trading session.
The CSOP Hang Seng Samsung 2X Daily Leveraged ETF (07747) saw its price rise by 10.76% to HK$170.9.
The CSOP Hang Seng SK Hynix 2X Daily Leveraged ETF (07709) surged 19.07% to HK$117.4.
The CSOP Hang Seng Korea Technology ETF (03431) increased by 5.87%, trading at HK$11.36.
The TR Korea ETF (02848) advanced 9.61% to HK$1,950.
This activity was driven by a powerful rally in the underlying Korean stock market.
In afternoon trading, South Korea's benchmark KOSPI index surged by 8% to reach 8,086.47 points.
Among individual stocks, SK Hynix shares jumped over 14%.
Reports indicate the company is installing additional equipment at its Cheongju P&T6 packaging and testing facility to meet demand for sixth-generation high-bandwidth memory (HBM4).
Mass production at this plant is scheduled to begin in the first quarter of next year, operating in synergy with the Cheongju DRAM wafer fab M15X.
Further positive sentiment stemmed from comments by NVIDIA founder and CEO Jensen Huang, who expressed a positive consideration to host the NVIDIA GTC AI conference in South Korea.
Future collaboration between NVIDIA and South Korean firms like SK Hynix and SK Telecom is projected to generate business opportunities worth hundreds of billions of dollars for the country.
South Korean President Lee Jae-myung commented during a press conference marking his first year in office, stating he believes the Korean stock market remains undervalued and that all Koreans benefit from rising share prices.
In response to market volatility, the Korea Exchange convened an emergency market assessment meeting to review the significant decline in U.S. markets and overnight futures activity.
The exchange announced plans to strengthen its institution-wide emergency response mechanisms and increase surveillance of unfair trading practices and illegal short-selling activities.
Adding an analytical perspective, the chief Asia Pacific equity strategist at Goldman Sachs suggested that, from a long-term viewpoint, the recent market movements may be seen as a technical correction.
Despite being a sharp pullback within a longer-term bull market, the underlying fundamentals are described as remaining very robust.
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