South Korea's KOSPI extended its sharp rebound on Friday, opening 2.7% higher at 6,995.67 and briefly touching 7,010.86 for the first move above 7,000 since July 24, as cooler U.S. inflation data encouraged investors back into semiconductor shares. The index was on course to end seven straight weekly declines and had climbed almost 22% from its July 30 low by Thursday, meeting the conventional definition of a bull market, after a 3.6% gain the previous session. Samsung Electronics rose about 1% early Friday and SK Hynix jumped more than 5%, with the recovery in chipmakers supported by expectations that AI infrastructure demand and tight memory supply remain intact. Macquarie analysts said July's decline looked more like a positioning and fund-flow shock than a deterioration in semiconductor fundamentals, while South Korean regulators have tightened access to single-stock leveraged ETFs after leveraged products and margin selling amplified the earlier sell-off. Softer U.S. consumer and producer inflation, alongside weak July employment data, reduced fears of a near-term Federal Reserve rate increase and pushed the implied probability of a September hike toward one-third. The rally also lifted regional equities, though analysts said higher oil prices and geopolitical risks could still threaten the recovery.