Korea’s KOSPI Index Falls Over 3% as Chip Stocks Resume Declines: Samsung Electronics and SK Hynix Both Drop Over 5%

TradingKey - During the Asian trading session on June 10, South Korean stocks fluctuated lower as chip stocks again led the broader market decline, weighed down by rising geopolitical risks and an overnight slump in U.S. semiconductor shares.

The South Korean KOSPI index saw its intraday losses widen to as much as 4% at one point, touching a low of 7,772.35 points. As of press time, the KOSPI was down 3.25% at 7,833.65 points. In the previous trading session, the index had rebounded sharply by more than 8%, reclaiming the 8,000-point threshold.

[Source: TradingView]

The semiconductor sector once again became the primary drag, with both Samsung Electronics and SK Hynix falling more than 5%. Overnight, the Philadelphia Semiconductor Index fell 1.93%, while Arm ( ARM) dropped over 6%, and Qualcomm ( QCOM) fell more than 5%, weighing on sentiment for Asian chip stocks.

On the news front, the U.S. military launched strikes against Iran on the 9th, significantly weakening market risk appetite. A researcher at Kiwoom Securities analyzed that against the backdrop of recent dollar strength and ongoing pressure on the South Korean won, short-term profit-taking and a wait-and-see sentiment regarding inflation data have combined to intensify market volatility.