Samsung Electronics, SK Hynix Drop 7%-8% as Long-Term Bond Yields Surge
Summary
- Samsung Electronics and SK Hynix plunged 7.17% and 8.42%, respectively, as investor sentiment weakened over a surge in long-term government bond yields in the US and Japan.
- The rise in sovereign bond yields across major economies, including the 30-year US Treasury yield topping 5.33%, and a supply-demand imbalance are spilling over into weakness in South Korea's heavyweight stocks.
- The impact also fueled profit-taking pressure centered on semiconductor stocks in the US market, sending the Philadelphia Semiconductor Index down nearly 5%.
Forecast Trend Report by Period
Samsung Electronics and SK Hynix, South Korea's two biggest chip stocks, slumped in early trading on August 19 as surging long-term government bond yields in the US and Japan dented investor sentiment.
As of 9:12 a.m., Samsung Electronics was trading at 249,250 won, down 7.17% from the previous session. SK Hynix was down 8.42% at 1.522 million won. Samsung Electronics preferred shares fell 6.64%, while SK Square slid 11.28% and Samsung Life Insurance dropped 9.18%.
The sharp losses followed an overnight decline on Wall Street, where higher long-term Treasury yields continued to pressure stocks.
The yield on the 30-year US Treasury rose above 5.33% intraday on August 18, reaching its highest level since 2007. The climb came as rising sovereign yields in major markets including Europe and Japan spread, while governments stepped up borrowing to cover fiscal deficits and Big Tech companies boosted demand for corporate bond financing for AI investment, worsening a supply-demand imbalance.
The fallout also hit US stocks, with profit-taking pressure intensifying in semiconductor names such as Micron and SanDisk. The Philadelphia Semiconductor Index fell nearly 5%.
Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com
Korea Economic Daily
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