AJP Asia Intelligence Agency

Middle East Tensions Ignite Declines in Samsung and SK Hynix Stocks

As military tensions in the Middle East escalate, international oil prices and U.S. Treasury yields have surged, leading to a decline of over 2% in South Korea's semiconductor giants, Samsung Electronics and SK Hynix, during early trading.


According to the Korea Exchange, as of 9:38 a.m. on September 2, Samsung Electronics shares were trading at 254,000 won, down 7,000 won (2.68%) from the previous trading day. SK Hynix also saw a decline, with shares falling 42,000 won (2.48%) to 1,651,000 won.


On the New York Stock Exchange, all three major U.S. indices closed lower. The Dow Jones Industrial Average fell by 0.79%, while the S&P 500 dropped by 0.71%. The Nasdaq Composite Index decreased by 1.03%. Investor sentiment was dampened following the U.S. conducting additional airstrikes against Iran, which prompted retaliatory attacks from Iran.


International oil prices also spiked, with November Brent crude futures rising 4.60% to $94.65 per barrel, and October West Texas Intermediate (WTI) crude increasing by 5.20% to $90.22. The yield on the U.S. 10-year Treasury note continued to rise, reaching around 4.79%, the highest level since January 2025.


In this environment of high oil prices and interest rates, the Philadelphia Semiconductor Index fell by 2.14%. Notable declines included Micron (-2.64%), SanDisk (-1.90%), and Seagate (-1.42%). SK Hynix's American Depositary Receipts (ADRs) also dropped by 2.31%, adding downward pressure on domestic semiconductor stocks.


As a result of the weak U.S. market, South Korea's stock market is also experiencing declines. The KOSPI opened down 210.33 points (3.08%) at 6,625.47 but has slightly reduced its losses. The KOSDAQ index also opened lower, down 18.45 points (2.25%) at 802.80.





* This article has been translated by AI.