South Korean Stock Selloff Eases as Retail Traders Buy the Dip

South Korea’s stock benchmark pared losses after a sharp afternoon rebound as retail investors bought on the dip, offsetting some of the earlier selling driven by valuation concerns.

The Kospi Index fell 2.9% on Wednesday, its steepest drop since August, after recovering from an intraday loss of as much as 6.2%. Index heavyweights Samsung Electronics Co. and SK Hynix Inc. led the decline, though both also trimmed steeper losses from earlier in the session.