Seoul [South Korea], August 25 (ANI): Shares of Samsung Electronics and SK hynix fell nearly 4 per cent each on Tuesday, dragging South Korea's KOSPI more than 3 per cent amid a broad selloff in US chip stocks.
The KOSPI opened at 6,535.93, down 161.03 points, or 2.40 per cent, from the previous session, as per the Korea Exchange and slipped below 6,500 mark shortly after the open. The index was trading at around 6,530.93, down 166.03 points or 2.48 per cent at the time of reporting. Likewise, KOSDAQ also began trading at 806.93, down 6.40 points, or 0.79 per cent.
Selling pressure intensified after the open, led by semiconductor stocks. Among major large-cap stocks, Samsung Electronics and SK hynix recorded some of the steepest declines. Samsung Electronics fell 3.79 per cent to 247,250 won, while SK hynix plunged 4.97 per cent to 1.588 million won.
Other chip-related stocks also traded lower, with Samsung Electronics preferred shares down 3.43 per cent, SK Square declining 4.46 per cent and Samsung Electro-Mechanics losing 5.01 per cent.
The Dow Jones Industrial Average surged 0.3 per cent, however, the Standard & Poor's 500 and the Nasdaq fell 0.3 per cent and 0.8 per cent, respectively. Micron Technology plunged 5.9 per cent and SanDisk 6.5 per cent, while Nvidia dropped 2.9 per cent.
According to analysts, "a correction in chip stocks that followed Samsung Electronics' shareholder return plan spread to related U.S. names amid growing caution ahead of Nvidia's earnings report," noted Seol Economic Daily.
Nvidia, which has declined for seven consecutive sessions, has also prompted investors to trim positions ahead of its results, adding to selling pressure across the semiconductor sector.
Nvidia's earnings, due on August 26, are being closely watched as a key indicator for the near-term direction of chip stocks. "Analysts said that if Nvidia's results and its outlook for artificial intelligence (AI) chip demand meet market expectations, investor sentiment toward chip stocks, including Samsung Electronics and SK hynix, could recover," the report noted. (ANI)
Samsung, SK hynix slip 3-4% dragging KOSPI by over 3% amid broad US chip selloff
