SEOUL, August 07 (AJP) - South Korean stocks fell for a second straight session Friday, dragged down by SK hynix as renewed Strait of Hormuz concerns and weakness in United States tech shares fueled foreign selling.
The benchmark KOSPI closed 0.60 percent lower at 6,258.77, extending Thursday's 4.58 percent drop. The index opened 1.09 percent higher at 6,365.07 and climbed as high as 6,415.60 before reversing course. It briefly fell to 6,158.73 before paring losses toward the close.
Foreign investors sold a net 863 billion won ($604 million) worth of KOSPI shares, extending their selling streak to a second session. Individuals and institutions bought a net 267.4 billion won and 579.1 billion won, respectively, offsetting some of the decline.
Foreigners had started the session as net buyers before turning sellers during the day, while retail investors moved in the opposite direction. In the KOSPI200 futures market, however, foreign investors remained net buyers, purchasing about 230 billion won.
Chip stocks were at the center of the selloff. SK hynix fell 4.88 percent, making it one of the biggest drags on the KOSPI, while Samsung Electronics bucked the weakness with a 0.22 percent gain.
SK hynix came under pressure after reports that Nvidia may use less high-bandwidth memory (HBM) than originally planned in Rubin Ultra, its next-generation AI chip for data centers. The news raised concerns over HBM demand, particularly for SK hynix, which has greater exposure to high-bandwidth memory than its domestic rival.
Overnight weakness in U.S. technology shares added to concerns over the semiconductor sector. SanDisk plunged 6.81 percent and Western Digital tumbled 13.03 percent following their earnings releases, while SK hynix's U.S.-listed American depositary receipts fell 4.97 percent.
Renewed tensions surrounding the Strait of Hormuz weighed on broader risk sentiment. Brent crude futures climbed 3.8 percent to $82.49 a barrel after reports that Iran was considering legislation that would prohibit vessels linked to the U.S., Israel and other hostile countries from passing through the key waterway.
Investors also remained cautious ahead of the U.S. employment report due later Friday, which could provide fresh clues on the Federal Reserve's interest-rate outlook.
Elsewhere among large-cap stocks, SK Square dropped 3.20 percent to 939,000 won, Hyundai Motor lost 1.13 percent to 395,500 won, Samsung Life Insurance fell 4.17 percent to 275,500 won and HD Hyundai Heavy Industries slipped 0.20 percent to 506,000 won. NAVER sank 7.08 percent to 210,000 won.
Battery, biotechnology and defense shares, however, provided pockets of strength. POSCO Holdings rose 3.76 percent to 331,000 won, while LG Energy Solution climbed 4.35 percent to 360,000 won, Samsung Electro-Mechanics gained 3.99 percent to 1,278,000 won, Samsung Biologics advanced 2.77 percent to 1,556,000 won and Hanwha Aerospace climbed 4.08 percent to 1,097,000 won.
Solar stocks also rallied on expectations that South Korean producers could benefit from new U.S. trade measures targeting China. Hanwha Solutions surged 11.51 percent to 32,750 won and OCI Holdings jumped 11.68 percent to 272,500 won after the U.S. announced a 15 percent tariff targeting Chinese polysilicon and related products.
The divergence was also reflected at the sector level. Securities stocks fell 2.41 percent, construction shares declined 2.07 percent and electrical and electronics stocks lost 1.29 percent. Chemical shares, meanwhile, gained 4.37 percent and health care stocks advanced 4.20 percent.
The junior KOSDAQ also succumbed to profit-taking after a sharp five-session rally. The index closed 0.36 percent lower at 798.81, ending a five-session winning streak after briefly climbing as high as 814.80. It had regained the 800-point level Thursday for the first time in 15 trading days but slipped back below the threshold after surging roughly 24 percent over the previous five sessions.
Foreign and institutional investors sold a net 253.9 billion won and 102.9 billion won worth of KOSDAQ shares, respectively, while individuals bought a net 340.4 billion won. Foreigners have now been net sellers on the junior market for five consecutive sessions.
Semiconductor and robotics shares led the declines on the junior market. Rainbow Robotics fell 5.01 percent to 465,000 won, Jusung Engineering dropped 4.20 percent to 127,800 won, Wonik IPS declined 4.64 percent to 88,300 won, EO Technics lost 3.57 percent to 324,500 won and Leeno Industrial slipped 1.79 percent to 65,700 won.
Biotechnology and battery stocks moved in the opposite direction. Alteogen gained 3.92 percent to 305,000 won, HLB jumped 5.97 percent to 37,300 won and ABL Bio rose 3.96 percent to 86,600 won. EcoPro BM advanced 4.39 percent to 107,000 won, while EcoPro added 2.87 percent to 86,000 won.
Trading turnover reached 24.70 trillion won on the KOSPI and 5.24 trillion won on the KOSDAQ. Trading on alternative exchange Nextrade's pre-market and main-market sessions totaled 12.21 trillion won.
In the currency market, the Korean won weakened to 1,418.00 per dollar from 1,416.10 at the previous close.
Regional markets showed a mixed picture. Japan's Nikkei 225 edged down 0.12 percent to 65,606.71. In contrast, China's Shanghai Composite rose 1.02 percent to 3,940.04 and Hong Kong's Hang Seng Index gained 0.53 percent to 25,666.31, supported by stronger-than-expected Chinese trade data.
AJP Takeaways
• South Korea’s KOSPI fell 0.60 percent to 6,258.77 on Aug. 7, 2026, extending its decline for a second consecutive session after a 4.58 percent drop on Aug. 6.
• SK hynix fell 4.88 percent on Aug. 7, 2026, after reports that Nvidia may use less high-bandwidth memory in its next-generation Rubin Ultra AI chips, raising concerns about future HBM demand.
• Foreign investors sold a net 863 billion won worth of KOSPI shares on Aug. 7, 2026, while individual and institutional investors were net buyers.
• Brent crude rose 3.8 percent to $82.49 a barrel as renewed concerns over the Strait of Hormuz increased geopolitical and inflation risks for global markets.
• The KOSDAQ fell 0.36 percent to 798.81 on Aug. 7, 2026, ending a five-session winning streak after gaining roughly 24 percent over the previous five trading days.
• Hanwha Solutions and OCI Holdings surged 11.51 percent and 11.68 percent, respectively, as investors bet that new U.S. tariffs on Chinese polysilicon and related products could benefit South Korean solar companies.
• The South Korean won weakened to 1,418.00 per U.S. dollar on Aug. 7, 2026, from 1,416.10 at the previous close.
• Regional markets were mixed on Aug. 7, 2026: Japan’s Nikkei 225 fell 0.12 percent, while China’s Shanghai Composite rose 1.02 percent and Hong Kong’s Hang Seng Index gained 0.53 percent.
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