South Korea’s KOSPI index reopened decrease on July 20, its first session since Friday’s Structure Day vacation. The index slid as little as 6,498 factors earlier than paring some losses.
The drop pushed the index greater than 25% under its June peak, assembly the edge for a technical bear market. Chip-sector jitters compounded with an escalating US-Iran battle to drive the slide.
Chip Shares Swing Laborious on Reopening
Samsung Electronics and SK Hynix inventory each opened down greater than 5% earlier than overseas traders moved in. The Philadelphia Semiconductor Index shed 4.3% whereas Korean markets stayed shut for the vacation final Friday. Rising competitors from Chinese language AI fashions added additional strain on the reminiscence chip commerce.
International traders internet purchased 278.4 billion gained ($187.1 million) in early buying and selling, concentrated in electronics shares. Retail traders internet bought 300.8 billion gained over the identical window. Han Ji-young, a researcher at Kiwoom Securities, mentioned the decline displays how far main shares have fallen.
“Since July, the KOSPI has dropped by about 25% from its peak, coming into a technical bear market. A pointy decline of 30–40% in main shares similar to Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics is amplifying the sense of decline.”
Received Slides as Center East Threat Builds
The won-dollar fee opened at 1,488.3, extending its slide whereas oil costs climbed on fears that the battle may disrupt the Strait of Hormuz. The stronger greenback added to import-price strain already constructing after the Financial institution of Korea’s first fee hike since 2023.
Analysts see this week’s US hyperscaler earnings as the following catalyst. Alphabet reviews July 22, with Microsoft, Meta, and Amazon following earlier than month’s finish. Their capital spending outlooks may decide whether or not chip shares discover a flooring or prolong the slide.
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