A sharp rally in the South Korean stock market drove emerging market equities higher on Thursday, as a global recovery in artificial intelligence trading pushed Seoul's KOSPI Index into a technical bull market. Jefferies strategist Mohit Kumar wrote in a report: "We remain comfortable with our overweight positions in the artificial intelligence sector, as the earnings season has been strong and there are no signs of a slowdown in capital expenditures." The KOSPI Index rose 3.2% on Thursday, bri

The surge in South Korea's stock market drove emerging market equities higher on Thursday, as a global rebound in artificial intelligence trading pushed Seoul's KOSPI index into a technical bull market. Jefferies strategist Mohit Kumar wrote in a report: "We remain comfortable with our overweight positions in the artificial intelligence sector. The earnings season has been strong, with no signs of a slowdown in capital expenditure." The KOSPI index rose 3.2% on Thursday, marking a cumulative increase of about 22% since the low on July 30. Heavyweight memory chip manufacturers Samsung Electronics and SK Hynix led the gains, both rising by around 5%. Kumar noted that geopolitics remain in focus, with the Strait of Hormuz still closed. If the stalemate continues for a few more weeks, the market should be able to absorb it well, but if it lasts for months rather than weeks, the market will need to reprice.