Written and reviewed by Kevin Nerway · Last verified 20 August 2026
Key Takeaways
- South Korea's Kospi benchmark surged 5.9% to 6,852.58 on Thursday, August 20, 2026, recovering from a 5.8% drop in the prior session as SK Hynix surged 12.7% on share buybacks and Samsung Electronics gained 9.5%.
- The US Treasury Department's decision to at least double its planned purchases of longer-term government debt provided direct liquidity relief, causing the US 10-year Treasury yield to ease to 4.65% from 4.71%.
- Falling US borrowing costs brought down global sovereign bond yields, with Japan's 10-year government bond yield retreating to 2.85% from recent 30-year highs near 2.95%.
- Energy markets remained elevated due to ongoing geopolitical conflict involving Iran, with Brent crude advancing 1.4% to $92.88 per barrel while USD/JPY pushed up to 158.53.
US Treasury Debt Buybacks Relief Triggers Global Asset Rebound
I am Kevin Nerway, founder and lead analyst at PropFirmScan. On Thursday, August 20, 2026, global markets received a significant liquidity boost after the US Treasury Department announced an expanded sovereign debt buyback strategy. The department revealed plans to at least double the size of its purchases of longer-term government debt, directly intervening to stabilize secondary bond markets and suppress soaring yields.
The policy action provided immediate relief to equity investors who had been grappling with rising sovereign borrowing costs. Yields on the benchmark 10-year US Treasury bond dropped to approximately 4.65% from 4.71% earlier in the week. Simultaneously, the 30-year Treasury yield declined to roughly 5.19% from 5.28%. This easing in benchmark rates comes against a broader backdrop of inflation concerns driven by the ongoing war in Iran and elevated federal debt loads. Traders analyzing order flow data on fixed income shifts noted immediate capital reallocations into Asian tech equities during Thursday's trading session.
Kospi Leads Asian Tech Surge Following Chipmaker Buyback
South Korea's Kospi index led the global market rally, jumping 5.9% to close at 6,852.58. This sharp movement reversed a 5.8% decline recorded on Wednesday, which was driven by intensive selling across artificial intelligence holdings. The sector's prompt recovery was anchored by semiconductor heavyweight SK Hynix, which surged 12.7% after the firm announced a major share buyback program. Tech giant Samsung Electronics joined the rally, gaining 9.5%.
Rebounds were visible across regional indices as lower yields bolstered tech valuations across Asia:
- Japan's Nikkei 225: Advanced 1.4% to 66,216.79, overcoming domestic pressures after Japan posted its third consecutive monthly trade deficit in July alongside record import and export figures. OpenAI investor SoftBank Group added 3.1%.
- Hong Kong's Hang Seng: Climbed 1.2% to 25,800.98.
- China's Shanghai Composite: Gained 0.2% to 3,903.72.
- Australia's S&P/ASX 200: Rose 0.3% to 9,083.80.
- Taiwan's Taiex & India's Sensex: Gained 0.5% and 0.7%, respectively.
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