Samsung and SK Hynix Resist U.S. Chip Sector Decline
South Korean semiconductor shares remained stable Tuesday despite a sharp overnight drop in U.S. peers, driven by prior losses and bargain buying.
Samsung Electronics and SK hynix traded flat or slightly higher in early Tuesday sessions, bucking a significant overnight decline in U.S. chip stocks. Samsung Electronics held steady at 249,000 won, while SK hynix gained 0.12 percent to 1.699 million won. This stability occurred even as the Philadelphia Semiconductor Index fell 5.86 percent and major U.S. technology names like Nvidia and Micron dropped sharply.
The resilience of Korean chipmakers was attributed to steep losses sustained on Monday, which likely exhausted selling pressure, and subsequent bargain buying. Market data showed foreign investors and institutions acted as net sellers, while retail investors provided support as net buyers. However, SK hynix’s U.S.-listed American Depositary Receipts fell 7.6 percent, indicating that the domestic and offshore valuations are currently diverging.
U.S. Macro Pressures Hit Tech
The overnight sell-off in U.S. technology stocks was driven by broader macroeconomic concerns rather than company-specific news. Rising crude oil prices due to supply disruptions pushed the 10-year Treasury yield above 5 percent for the first time since October 2023. Additionally, renewed fears of a slowdown in artificial intelligence spending weighed on the sector, with Micron Technology dropping 5.25 percent and Nvidia falling 3.36 percent.
Hyundai Strike Disrupts Production Plans
HD Hyundai Heavy Industries shares fell 4.59 percent to 457,000 won as its union continued a partial strike. The labor dispute began after 21 rounds of wage negotiations failed to resolve differences over pay structure. The union rejected a company proposal that included a 110,000-won monthly base-pay increase and a 10 million-won incentive, leading to a four-hour daily strike that is set to intensify through the week.
Stablecoin Stocks Rise On Vote
Korean stablecoin-related equities rose in anticipation of a U.S. Senate procedural vote on the Digital Asset Market Clarity Act. Companies such as Aton Inc. and Douzone Bizon Co. saw gains exceeding 7 percent. The upcoming vote is significant because it could advance the bill to floor consideration, a development previously viewed as unlikely due to Democratic opposition over conflict-of-interest concerns involving President Trump.
