Asia Chip Stocks Snap Back: KOSPI Jumps 2.8%, Nikkei Reclaims 63,000

Asian equities staged a sharp recovery on Tuesday, with the chip names that led Monday's rout leading the bounce, as SK Hynix's record second-quarter results gave investors a fundamental anchor after two sessions dominated by fear.

South Korea's KOSPI surged 2.76 percent to 6,190.04 after opening 1.1 percent higher, clawing back a chunk of Monday's plunge that had briefly tripped circuit breakers. Japan's Nikkei 225 rose 1.07 percent to 63,034.55, reclaiming the 63,000 level it lost during the selloff, according to TradingKey.

Memory names lead the recovery

The rebound was concentrated exactly where Monday's damage had been worst. SK Hynix advanced 3.74 percent to 1,608,000 won after reporting the largest quarterly operating profit in Korean corporate history — a result that missed analyst estimates but confirmed the AI memory boom's underlying demand remains intact. Samsung Electronics climbed 4.55 percent to 230,000 won.

In Tokyo, Kioxia surged 7.30 percent to 47,800 yen, recovering part of the double-digit losses it suffered earlier in the week, while SoftBank Group edged up 0.1 percent to 5,100 yen.

From panic to reassessment

Monday's selloff had been triggered by a collision of anxieties: reports of a Chinese state-backed group mass-producing domestic immersion DUV lithography machines, and mounting concern over the leverage built into AI infrastructure financing after Nvidia's cumulative commitments reportedly swelled past $750 billion.

Tuesday's price action suggested investors concluded the punishment had outrun the evidence — at least for now. SK Hynix's 76 percent operating margin and guidance for capital spending at the top of its range gave the bulls their counterargument: whatever the financing structure above it looks like, the demand underneath is still being paid for in cash.

The test now shifts to the rest of earnings season. With Samsung's detailed results due this week and hyperscaler capex updates rolling in, Asia's chip complex will learn quickly whether Tuesday was the resumption of the rally — or a pause in the repricing.