By Kwanwoo Jun

Shares of Samsung Electronics and SK Hynix surged Tuesday as investors took the prior session's selloff as an opportunity to pile back in to the chip-making giants.

Samsung's stock notched its largest daily percentage gain in more than 17 years-- rising 11%--while SK Hynix added 9.3%, more than recouping Monday's losses.

The two companies have been a key engine of growth for the South Korean equities market, making it one of the world's best performers last year.

That momentum seems to be intact so far in 2026, as continued appetite for chip and other local stocks pushed the benchmark Kospi index past the 5000 mark for the first time in January.

On Tuesday, the rapid-fire recovery of Samsung and SK Hynix shares sent South Korea's Kospi 6.8% higher to 5288.08--a sharp U-turn from the index's 5.3% drop a day earlier.

The Kospi has gained 25% so far this year and appears to have scope to keep climbing.

JP Morgan analysts see more upside ahead for Samsung and SK Hynix, whose combined market value accounts for over a third of the Kospi. As the artificial-intelligence boom drives up chip prices, both stocks have room to rise 45%-50% in 2026, they said in a note.

The Kospi could go as high as 7500 this year, JP Morgan said. That would be another big step up from 4214.17 in late 2025.

As volatility across global markets persists, the Kospi's upward trajectory could be bumpy.

South Korean regulators had to step in again on Tuesday to quell excessive market moves, with the Korea Stock Exchange activating the so-called "sidecar" trading curb for a second day in a row.

Foreign and institutional investors turned massive net buyers during the session, piling aggressively back into local equities after driving the prior day's massive selloff.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

February 03, 2026 03:14 ET (08:14 GMT)

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