Kospi and Nikkei both fall due to semiconductor sell-off... giving back all gains?

▲ Korea, Japan, Semiconductors, Bear Market/AI Generated Image

Korean and Japanese stock markets fell together as selling pressure concentrated on memory semiconductor stocks. The weakness of SK Hynix and SoftBank Group weighed down the indices.

According to cryptocurrency specialized media BeInCrypto on August 7 (local time), the Kospi started at 6,365.07, 1.1% higher than the previous trading day's closing price of 6,296.39. During intraday trading, it rose to 6,415.60. It then gave back all its gains, falling to 6,221.60, a decrease of 74.79 points or 1.19% compared to the previous trading day. The Nikkei 225 also started higher at 65,746.13 but fell to 65,193.16. The decline was 489.88 points, or 0.75%. Intraday, it moved between 64,651.49 and 65,990.72.

Individual stock declines were also significant. SoftBank Group fell 3.69% to 5,485 yen. SK Hynix dropped 4.82% to 1,423,000 won. In contrast, Samsung Electronics showed a mixed trend, rising 0.43% to 231,500 won. Japanese flash memory company Kioxia also fell 2.03% to 47,750 yen during intraday trading.

Investor sentiment surrounding the memory semiconductor sector also wavered. Citigroup and Jefferies lowered their price targets for memory semiconductor stocks this week. SanDisk's stock price fell after it gave a conservative outlook, despite its quarterly earnings exceeding market expectations. Goldman Sachs analyzed that high expectations are already reflected in semiconductor company stock prices. This explains that even a slightly conservative outlook can lead to strong selling pressure, regardless of good performance.

Weakness in the US stock market also added pressure to Asian markets. The Nasdaq Composite fell 0.06%, and the S&P 500 fell 0.18%. The Dow Jones Industrial Average dropped 0.85%, ending a five-day winning streak. US initial jobless claims for the week ending August 1 were 199,000, slightly below market expectations. The US and Iran have not yet finalized the conditions for reopening the Strait of Hormuz.

[Article Summary]

-The Kospi rose to 6,415.60 intraday but gave back its gains, falling 1.19%.

-The Nikkei 225 dropped 0.75%, and SK Hynix and SoftBank Group also fell 4.82% and 3.69%, respectively.

-Selling pressure on memory semiconductor stocks and weakness in the US stock market put a strain on Korean and Japanese stock markets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*