KOSPI Hits 3-Day High as Foreigners Bet AI Fears Are Overblown

South Korea's benchmark stock index, the KOSPI, extended its winning streak to a third consecutive session on Tuesday, fueled by a strong wave of foreign buying as concerns over an artificial intelligence (AI) bubble appeared to ease. The local currency, however, weakened against the U.S. dollar.

The closed points, or , higher at . Trading volume was moderate at .

Foreign Capital Returns, Targeting Tech

The rally was largely driven by offshore investors, who net-purchased worth of local shares. In stark contrast, retail investors were net sellers, offloading . The positive sentiment was supported by an overnight bull run on Wall Street, where the and tech-heavy both closed higher, stoking hopes for a year-end Santa Claus rally.

"The KOSPI gained ground as foreign capital flowed back into the market amid eased woes over AI valuations," said , an analyst at . Lee noted that foreign investors were particularly focused on scooping up semiconductor shares.

Shipbuilders Spike on Trump's Naval Plan

Leading the charge were chipmakers. Tech giant climbed , and its rival added .

The day's biggest movers, however, were shipbuilders. shares spiked an incredible following reports that U.S. President had unveiled a plan to build a new naval warship in cooperation with . The news created a ripple effect, lifting rivals by and by .

In contrast, battery maker dipped , and automaker lost .