South Korean stocks fell in premarket trading, hit by a selloff in U.S. chip shares. Samsung Electronics (005930.KS) and SK hynix (000660.KS) each dropped more than 2%, while most large-cap stocks on the KOSPI and KOSDAQ declined. Concerns that a Chinese memory chipmaker will expand supply weighed on sentiment across the semiconductor sector.
Samsung Electronics traded at 245,000 won, down 2.20% from the previous session, as of 8 a.m. on the 13th, according to Nextrade. SK hynix fell 2.68% to 1.56 million won.
Other large-cap stocks also weakened. SK Square (402340.KS) lost 3.25% and Samsung C&T (028260.KS) fell 3.02%, while Samsung Electro-Mechanics (009150.KS) dropped 1.82%, LG Energy Solution (373220.KS) 1.88% and Hyundai Motor (005380.KS) 1.88%.
On the KOSDAQ, Alteogen (196170.KQ) fell 2.38%, EcoPro (086520.KQ) 2.38%, EcoPro BM (247540.KQ) 2.25% and EO Technics 1.96%. HLB (028300.KQ) bucked the trend, rising 0.56%.
The weakness followed a decline in U.S. chip stocks the previous day. Changxin Memory Technologies (CXMT), a Chinese memory chipmaker, unveiled plans to launch next-generation DDR5 chips for servers, raising concerns about expanding supply in the global memory market. Micron fell 3.9% and SanDisk dropped 6.0% in U.S. trading. A warning from Broadcom's chief executive about financing for artificial intelligence investment also pressured sentiment.
Brokerages are leaving open the possibility of an intraday rebound, given the size of recent declines. The KOSPI has fallen nearly 9% over the past four trading sessions, bringing it close to its 200-day moving average of 6,376 points. Whether that support level holds is seen as a key variable for the market's near-term direction.
Han Ji-young, an analyst at Kiwoom Securities (039490.KS), said the market will likely attempt an intraday rebound, supported by technical factors and bargain hunting after the string of sharp drops. U.S. consumer price index data and earnings from ASML and TSMC, both due this week, are also cited as variables.
