Japan and South Korea Stocks Close Higher in Deep V: Nikkei 225 and KOSPI Escape From the Brink, Samsung, SK Hynix and SoftBank Lead Tech Stocks Rally 3%
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Japanese and South Korean equity markets staged a V-shaped recovery on July 14, with the Nikkei 225 and KOSPI closing up 0.74% and 0.73% respectively, led by gains in semiconductor and tech shares. Despite heavy intraday selling driven by geopolitical tensions and US market volatility, oversold conditions triggered significant bargain-hunting. While this rally reflects technical support, the correction remains precarious. Investors should anticipate continued volatility over the next 48 hours, as the market weighs impending ASML earnings, US CPI data, and Federal Reserve testimony, which may determine the near-term direction of global indices.
TradingKey - Japanese and South Korean stock markets stage a dramatic "V-shaped rebound," with the KOSPI and Nikkei 225 closing slightly higher, while Samsung, SK Hynix, SoftBank, and Kioxia all gained around 3%.
During the Asian trading session on July 14, Japanese and South Korean stock markets experienced an extremely tense "long-short shakeout" and a "post-aftershock bottoming out and rebound." Both markets opened lower in the morning session and plunged further intraday under the shadow of US-Iran tensions and overnight losses in US equities, but later staged a resilient rally to close higher, bolstered by a strong influx of oversold buying and bargain-hunting capital.
The KOSPI index once plummeted uncontrollably by over 5% around midday, hitting an intraday low of 6,448.86 points, its lowest level since April 27, but ultimately closed up 0.73% at 6,856.84 points, recovering some of yesterday's losses; Samsung Electronics closed up 3.34% at 263,000 won, and SK Hynix rose 3.69% to 1,913,000 won.
KOSPI index chart, Source: TradingView
The Nikkei 225 Index also opened lower today, at one point dropping nearly 1,000 points intraday to a one-month low of 66,268.60 points, before late-day bargain-hunting led it to close up 0.74% at 67,743.45 points; Kioxia rose 2.98% to close at 69,100 yen, and SoftBank climbed 3.3% to 6,574 yen.
SoftBank stock price chart, Source: TradingView
Today's "V-shaped rebound" in Japanese and South Korean stock markets indicates that after consecutive sharp drops, technical indicators have signaled extremely oversold conditions, and short-term bargain-hunting flows are highly active. However, this does not mean the correction has ended. This week, ASML ( ASML) earnings, US CPI data, and Fed Chair Warsh's congressional testimony represent three major blockbusters set to detonate in succession, and the market could still face severe volatility over the next 48 hours.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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