Seoul rebounds as bond yields ease, chip tariffs loom

SEOUL, September 03 (AJP) - The KOSPI rebounded at Thursday's open, clawing back part of the previous session's 4 percent slide after U.S. Treasury yields pulled back from a nearly three-year high and Wall Street snapped a two-day losing streak.

The main index in Seoul was quoted at 6,661.27 in morning trade. The index added 98.55 points, or 1.5 percent. 

The recovery is narrow. The KOSPI 200 gained 1.4 percent, while the KOSDAQ, the junior board for smaller and technology companies, slipped 0.2 percent to 802.46. 

It also opens under a fresh policy overhang. U.S. Commerce Secretary Howard Lutnick said overnight that the Trump administration is drafting a targeted semiconductor tariff policy that would spare companies producing in the United States and charge those that do not. 

Traders read the remarks as reviving the build-or-pay calculus that has hung over Korean memory makers since Washington first floated a 100 percent chip tariff. Both Samsung Electronics and SK hynix have flagged that risk to investors.

Wednesday's damage was concentrated in those two names.

Samsung Electronics closed at 250,500 won, about $184, down 4.0 percent.

SK hynix closed down 4.7 percent at 1,613,000 won (about $1,186).

Foreigners sold a net 1.92 trillion won ($1.41 billion) on the main board in that session. Institutions sold a net 2.04 trillion won ($1.50 billion). Retail investors bought a net 2.30 trillion won, or $1.69 billion.

In Tokyo the Nikkei 225 was up 83.12 points at 64,408.76, a marginal bounce after Wednesday's 1,889.70-point drop.

The won was quoted at 1,360.30 per dollar, 15.20 firmer than the previous session.

AJP Takeaways

• KOSPI opened higher on Thursday after U.S. Treasury yields retreated overnight, recovering part of a near 4 percent slide, though the rebound was confined to large caps while the KOSDAQ fell.
• Commerce Secretary Howard Lutnick signalled that Washington is preparing a semiconductor tariff regime that would exempt manufacturers producing inside the United States and charge those that do not, reopening a policy risk for Korean memory makers.
• Samsung Electronics and SK hynix absorbed the bulk of the previous session's loss, falling 4.0 percent and 4.7 percent respectively, as foreign and institutional investors sold and retail investors bought.

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