Samsung, SK Hynix Slump Drags Kospi to End Three-Day Rally; Nikkei 225 Rises on BOJ Rate Hike Expectations

TradingKey - Japanese and South Korean stock markets diverge sharply: KOSPI plummets 1.79% to lose the 6,800 mark, Nikkei defies trend to reclaim the 66,000 level, and Kioxia tumbles nearly 9%.

During the Asian session on August 28, Japanese and South Korean stock markets showed significant divergence. Among them, the KOSPI Index ended its three-day winning streak, falling 1.79% to lose the 6,800 mark and closing at 6,788.88 points. Both major heavyweights saw sharp drops, with SK Hynix tumbling 3.87% to lose the 1.7 million mark again, closing at 1,663,000 KRW, while Samsung Electronics fell 2.82% to lose the 260,000 mark, closing at 258,500 KRW.KOSPI Index Chart, Source: TradingView

Market expectations of another rate hike by the Bank of Japan (BOJ) in autumn continued to heat up, driving large bank stocks such as Mitsubishi UFJ Financial Group to rise against the trend. This provided key support for the Nikkei 225 Index, pushing it up 0.41% against the trend to close above the 66,000 mark at 66,405.34. However, both major heavyweights fell, with Kioxia slumping 8.76% to close at 47,900 JPY and SoftBank falling 0.75% to close at 5,161 JPY.

The positive effect in Japanese and South Korean stock markets from the previous trading day driven by Nvidia (NVDA)'s stellar earnings report is diminishing at the margin. Market capital is highly focused on global central bank policy moves and inflation indicators this weekend. If global rate-cut expectations become clear, high-tech and semiconductor sectors may launch a new rally in early September.