Kospi Index rebounds 5.4%, but investor confidence remains fragile

LootboxPhobia · 2026-03-10T12:00:52+00:00

The KOSPI index rose 5.4% on Tuesday, but investor confidence was shaken, and it may continue to decline in the short term. High energy costs are affecting the artificial intelligence concept, and SoftBank's credit spread widening is exerting negative pressure on Korean chip companies. The outbreak of war in Iran interrupted the index's upward momentum, and it is currently seeking stable support levels.

LootboxPhobia

2026-03-10 12:00:52

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Investing.com – The Kospi index closed up 5.4% on Tuesday, but investor confidence remains severely damaged, indicating a potential further decline in the short term.

As investors consider the high energy costs associated with data center operations, the AI concept is weakening, with these costs eroding valuations. SoftBank’s credit spread has widened significantly as it attempts to make a large investment in OpenAI.

This development negatively impacts South Korean chip manufacturers, which had previously performed strongly due to optimistic prospects for AI demand.

With the outbreak of the Iran war, the Kospi index halted its upward momentum and is now seeking a stable footing, which is more likely to be closer to the lower end of the current trading range rather than the higher end.

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