Kospi erases 2% loss to turn positive; SK Hynix buyback, local funds support market

The Korean Composite Stock Index (Kospi) recovered from an earlier 2% decline, rising as much as 1.6%, supported by SK Hynix's share buyback and local funds entering the market. SK Hynix turned positive from a decline, gaining as much as 3.2%. The company launched a 2 trillion won, three-month share buyback on Thursday. Local funds net bought 518 billion won of Kospi constituent stocks, while foreign investors and retail investors sold. Kiwoom Securities analyst Han Ji-young said: "Kospi's sharp drop last Friday appears excessive and may create opportunities for buying on dips." She also said: "However, a series of major U.S. events this week will disrupt the market, and investors need to prepare for increased volatility."