Kospi Falls Below 7,500 Early on May 13 After US Inflation Shock; Samsung Electronics, SK Hynix Drop
Summary
- A US inflation shock sent the Kospi index down into the 7,400 range early in the session, dampening investor sentiment.
- Heavyweight semiconductor shares including Samsung Electronics and SK Hynix weakened as the Philadelphia Semiconductor Index tumbled.
- Foreign investors and institutions were net sellers in both the main board and the Kosdaq market, while retail investors remained net buyers.
Forecast Trend Report by Period
Inflation fears spread across the broader market
Chip heavyweights fall as US tech stocks weaken
South Korea’s Kospi fell for a second straight session on May 13, sliding into the 7,400 range early in the day. Investor sentiment weakened after a US inflation shock sparked a sharp selloff in technology shares.
As of 9:08 a.m., the Kospi was down 154.94 points, or 2.03%, at 7,488.21. The index opened 1.67% lower and extended its losses.
Inflation concerns spread across the broader market. US consumer prices rose 3.8% in April from a year earlier, Labor Department data showed. That was slightly above market expectations of 3.7% and marked the fastest increase since May 2023. Analysts said the impact of the war between the US and Iran was starting to feed into consumer prices.
Major US stock indexes finished mixed as inflation worries intensified. Semiconductor shares, which had led the recent rally, posted steep losses. The Philadelphia Semiconductor Index fell 3.01%.
On the Kospi, foreign investors were net sellers of 1.237 trillion won. Retail investors and institutions were net buyers of 1.0443 trillion won and 157.4 billion won, respectively.
Most large-cap Kospi stocks traded lower. Samsung Electronics fell 4.84% and SK Hynix dropped 1.74%. Doosan Enerbility lost 3.58%, SK Square fell 1.95%, LG Energy Solution slipped 1.47%, Samsung Electro-Mechanics declined 1.04%, Samsung Biologics fell 0.35% and Hanwha Aerospace lost 0.23%. Hyundai Motor rose 2.32% and HD Hyundai Heavy Industries gained 1.56%.
The Kosdaq also fell. As of that time, the index was down 7.41 points, or 0.63%, at 1,171.88. In the Kosdaq market, foreign investors and institutions were net sellers of 112 billion won and 1.8 billion won, respectively. Retail investors were net buyers of 125.7 billion won.
The won opened lower against the dollar. In Seoul foreign-exchange trading, the won-dollar rate opened at 1,493.10 won per dollar, up 2.20 won from the previous session.
Lee Su, Hankyung.com reporter 2su@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
