SEOUL, June 26 (AJP) — South Korean and Japanese shares fell Friday on broad profit-taking after the previous session's Micron Technology-fueled chip rally, while oil prices, which had returned to prewar levels, turned higher on reports of a suspected attack near the Strait of Hormuz.
As of 10:16 a.m., the benchmark KOSPI was down 2.72 percent at 8,687.50. The junior KOSDAQ fell 1.08 percent to 878.20.
Japan's Nikkei 225 declined 3.0 percent to 70,174.53.
In Seoul, foreign investors sold a net 1.75 trillion won worth of KOSPI shares as of 10:07 a.m., while retailers absorbed nearly all of the selling. Institutions were also net sellers, offloading 39.9 billion won.
The pullback came after one of the most volatile weeks in the KOSPI's recent history. The benchmark plunged 9.99 percent on Tuesday before rebounding about 8.7 percent over the following two sessions as Samsung Electronics and SK hynix traded places as South Korea's most valuable listed company.
Semiconductor shares led the decline in Seoul. Samsung Electronics fell 3.21 percent to 347,000 won after opening 1.26 percent lower, while SK hynix dropped 3.53 percent to 2,814,000 won.
The two chipmakers initially benefited from Micron Technology's stronger-than-expected earnings, but sentiment reversed after reports that Apple plans to raise prices across its product lineup and revise its next-generation chip roadmap to cope with soaring memory costs. While higher memory prices have improved earnings prospects for chipmakers, investors worried they could squeeze profit margins for major technology companies.
Losses spread across related stocks, with SK Square plunging 7.32 percent to 1,760,000 won and Samsung Electronics preferred shares falling 3.40 percent to 227,000 won. Samsung Electro-Mechanics, however, rose 1.85 percent to 203,400 won.
Among other large caps, Hyundai Motor fell 3.08 percent to 487,500 won, LG Energy Solution declined 2.27 percent to 344,000 won and Samsung Biologics slipped 0.94 percent to 1,373,000 won. Samsung Life Insurance lost 1.01 percent to 442,500 won, while Samsung C&T edged up 0.39 percent to 521,000 won.
Shipbuilders and financial shares were also mostly weaker. HD Hyundai Heavy Industries fell 2.92 percent to 565,000 won, Doosan Enerbility dropped 4.10 percent to 84,200 won, KB Financial slipped 0.39 percent to 151,300 won and Kia declined 2.01 percent to 136,700 won.
Market sentiment also weakened after the U.K. Maritime Trade Operations said it had received a report of a suspected attack on a cargo ship off the coast of Oman as it transited the Strait of Hormuz. The report revived concerns over Middle East oil supplies and pushed crude prices higher.
Brent crude futures for August delivery rose 2.06 percent to $75.26 a barrel, while U.S. West Texas Intermediate crude gained 2.25 percent to $71.92.
Wall Street offered little support overnight. The Dow Jones Industrial Average rose 0.14 percent, while the S&P 500 edged down 0.01 percent and the Nasdaq Composite lost 0.46 percent as investors reassessed the impact of rising memory-chip prices.
The Korean won also weakened, with the U.S. dollar trading at 1,547.9 won, up 5.2 won from the previous session's close of 1,542.7 won.
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