Samsung Electronics and SK Hynix are experiencing significant declines in early trading due to the weak performance of U.S. semiconductor stocks overnight.
As of 9:59 a.m. on the Korea Exchange, Samsung Electronics shares were trading at 250,000 won, down 18,500 won (6.89%) from the previous trading day. SK Hynix also saw a drop of 14,000 won (8.42%), bringing its stock price to 1,522,000 won.
The downturn in both stocks is attributed to a broad decline in semiconductor-related shares on the New York Stock Exchange.
Last night, the Philadelphia Semiconductor Index fell by 4.98%. Micron Technology, a memory chip maker, dropped 7.02%, while SanDisk fell by 9.01%. SK Hynix's American Depositary Receipts (ADRs) plummeted by 9.20%.
The widening losses in semiconductor stocks are analyzed as a response to rising geopolitical tensions in the Middle East, which have heightened concerns about inflation and interest rate increases.
With international oil prices on the rise and U.S. long-term Treasury yields remaining high, investor sentiment towards technology stocks has weakened. A message from U.S. President Donald Trump indicating that negotiations with Iran are not currently underway has also fueled risk-averse sentiment.
Seo Jeong-hoon, a researcher at Samsung Securities, stated, "The index has shown weakness due to rising international oil prices and long-term Treasury yields stemming from the situation in the Middle East. In particular, the increased volatility of semiconductor-related stocks is putting pressure on the domestic market."
Jo Jae-woon, a researcher at Daishin Securities, noted, "Concerns about inflation have intensified due to the deepening geopolitical risks in the Middle East, leading to a decline in investor sentiment focused on technology stocks. The upcoming FOMC minutes and the Jackson Hole meeting will be key variables influencing short-term volatility regarding the Federal Reserve's inflation assessment."
* This article has been translated by AI.
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