SK Hynix Drops Near 11% as KOSPI Hits 37th Sidecar of 2026
SK Hynix shares dropped 10.95% in Seoul on July 16, reversing the earlier session’s rally. A broader Asian chip selloff additionally dragged the KOSPI into its 37th sidecar of 2026.
Samsung Electronics fell 7.33% in the identical session. The KOSPI opened at 6,960.50, down 4.45%, and losses deepened to an early morning low of 6,753.
SK Hynix Leads the Asian Chip Selloff
SK Hynix fell to a low of 1.823 million received, wiping out most of an 8% rally from the prior session. The inventory had already logged its steepest one-day drop on Monday, as traders booked income on AI-spending considerations.
Other Korean chip names slid alongside it. Seoul Semiconductor misplaced greater than 5%, Samsung SDI fell over 2%, and LG Innotek dropped about 1%.
The weak point unfold throughout Japan too. Advantest fell greater than 6%, SoftBank Group slid practically 7%, Tokyo Electron misplaced over 5%, and Renesas Electronics dropped 4%.
The area tracked an in a single day hunch on Wall Street. Micron Technology fell 7.94%, Marvell Technology dropped 7.27%, and Intel declined 4.43%. AMD and Lam Research every fell about 3%.
KOSPI’s 37th Sidecar Fires Again
The Korea Exchange triggered a sell-side sidecar at 9:10 a.m., the 12 months’s nineteenth. KOSPI 200 futures had already fallen 5.22% to 1,104.40 factors.
A sell-side sidecar suspends program promote orders for 5 minutes. It triggers every time futures drop 5% or extra for no less than a minute.
By 9:21 a.m., the money KOSPI had dropped to six,886.48, a decline of 5.46%. Sidecars, each purchase and promote mixed, have now fired 37 times this year, together with another KOSPI trading halt at first of July.
The reversal got here quick. Buy-side sidecars had fired on each the KOSPI and KOSDAQ simply in the future earlier. Foreign traders net-bought 2.33 trillion received of KOSPI shares, briefly pushing the index again above 7,000.
Analysts Flag a Crowded Trade
The selloff got here regardless of sturdy earnings from ASML. The Dutch chip-equipment maker raised its full-year gross sales steering for a second time this 12 months. It projected income of 43 billion euros to 45 billion euros.
Louis Kondratev, a dealer at XFUNDs, instructed CNBC the pullback displays how crowded the AI-driven semiconductor commerce has change into.
“Semiconductors alone now make up roughly 20% of the S&P 500, which is extremely tough to maintain.”
— Louis Kondratev, dealer at XFUNDs, CNBC
He added that valuations might wrestle to carry at present ranges even when earnings keep sturdy.
“Earnings momentum has been very sturdy, however it’s principally concentrated in semiconductors, and that momentum might start to gradual as valuations discover their place.”
— Louis Kondratev, dealer at XFUNDs, CNBC
Regulators are additionally watching the volatility. South Korean officers met Thursday to debate leveraged ETF products tied to single shares, reviewing their rising market influence.
Whether this marks a one-day reversal or a deeper correction might rely upon the earnings forward.
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