South Korea’s KOSPI recovered from early losses on Monday and rose more than 1% intraday as strong export data encouraged investors to buy on dips. According to Odaily, the index had fallen nearly 2% earlier, tracking declines on Wall Street amid concerns about heavy spending by AI companies.

Kiwoom Securities analyst Han Ji-young said the market had entered oversold territory again, while fundamentals remained solid and corporate earnings expectations were improving. She said stronger-than-expected October exports could increase the likelihood of further upward revisions to consensus earnings forecasts.

South Korea’s October exports nearly doubled, marking their largest increase in more than 50 years, as global demand for AI investment supported chip shipments. A survey showed manufacturing activity growth slowed to an eight-month low in October amid weaker output and demand. President Lee Jae-myung pledged to invest heavily in AI to increase South Korea’s economic growth potential.