Kospi, Nikkei 225 Open Lower on Hotter-Than-Expected US CPI; SoftBank Slumps 9%, Samsung and SK Hynix Follow Lower

TradingKey - Rising rate-hike expectations weighed on Japanese and South Korean stocks at the open, with SoftBank plunging 9% to lead losses in Asian tech shares.

During Asian trading hours on November 11, Japanese and South Korean equities diverged in consolidation. South Korea's benchmark KOSPI index opened lower but climbed higher, up 0.26% at the open to trade at 5,252.51 points; Samsung Electronics slipped 0.65%, falling below the 200,000 threshold to 197,600 Korean won; SK Hynix fell 0.74% to 1,203,000 Korean won.

KOSPI Index Chart, Source: TradingView

The Nikkei 225 fell 0.1%, fluctuating above the 60,000 mark at 60,396.15 points; Kioxia dropped 2.45%, slipping below the 9,000 threshold to 8,846 yen; SoftBank slumped 9.17% to 3,517 yen.

Higher-than-expected U.S. October CPI data fueled expectations of accelerated interest rate hikes. The three major U.S. stock indices snapped their one-day rebound, and the Philadelphia Semiconductor Index (SOX) closed down 0.35%, putting an end to an extreme short-squeeze rally. This directly led to a sluggish opening in Asian trading today.

Going forward, closely monitor whether the yen appreciates sharply against the U.S. dollar due to plunging crude oil prices, which would weigh on the earnings outlook for Japanese export automakers. Meanwhile, attention should also be paid to the scrutiny of the CHIPS Act following Democratic control of the U.S. Congress, as well as potential policy disruptions from Washington political hearings regarding overseas capital expenditures by Samsung and SK Hynix.