South Korean stocks shook off the shock from a sharp selloff and rebounded strongly for the first time in four sessions. The KOSPI rose more than 4 percent on foreign and institutional buying to regain the 5,200 level. Buying curbs were triggered one after another early in the KOSPI and KOSDAQ markets.

On Nov. 10, the KOSPI closed up 220.28 points, or 4.39 percent, at 5,239.13 from the previous session.

The index opened up 228.37 points, or 4.55 percent, at 5,247.22 from the prior close and climbed as high as 5,300.92, crossing the 5,300 level. It later gave back some gains but ended the session with a rebound to the 5,200 level for the first time in four sessions.

By investor type, foreigners and institutions were net buyers of 353.2 billion won and 498.0 billion won, respectively. Retail investors were net sellers of 1.34 trillion won as they moved to lock in profits.

A buying curb that halts the effectiveness of program buy orders was triggered on the main board at 9:06:02 a.m. due to the early surge.

At the time, the KOSPI 200 futures price rose 5.76 percent to 821.04 from the reference price of 776.26.

Most heavyweight stocks by market capitalisation also ended higher.

Samsung Electronics closed up 4.74 percent at 198,900 won. SK Hynix gained 6.69 percent to 1,212,000 won.

SK Square rose 5.26 percent and Samsung Electro-Mechanics added 4.63 percent. LG Energy Solution gained 3.93 percent, Samsung Life rose 3.16 percent, Hyundai Motor climbed 1.29 percent and KB Financial Group rose 1.19 percent.

Samsung Biologics, however, closed down 2.78 percent at 1,468,000 won.

The KOSDAQ also rose. It closed up 28.64 points, or 4.48 percent, at 667.61. A buying curb was also triggered on the KOSDAQ market at 9:10 a.m.

In the Seoul foreign exchange market, the won-dollar exchange rate was 1,337.50, down 4.50 won from the previous session.

South Korean shares rebounded on bargain hunting focused on semiconductor stocks that had seen deeper declines after a recent selloff. The KOSPI showed strong gains, jumping more than 5 percent early in the session, but the rise narrowed as profit-taking emerged during the day.

Han Ji-young (한지영), an analyst at Kiwoom Securities, said investor sentiment was easily dampened as investors have tended to treat each rebound as a selling opportunity rather than a recovery of the trend.

She said it was necessary to note that the market recently went through, in a short period, a level of stock price adjustment seen during past major crises such as the IMF foreign exchange crisis, the dot-com bubble collapse and the global financial crisis.

Han said existing negative factors, such as unease over the artificial intelligence (AI) industry and distrust in semiconductor earnings, have been largely priced into stocks. She forecast that a rebound in U.S. semiconductor stocks, the U.S. October consumer price index (CPI), and CoreWeave results could provide a catalyst for a reversal in investor sentiment.