KOSPI Falls Over 4% as Trading Resumes After Holiday, Deepening Bear Market
South Korea’s KOSPI index reopened decrease on July 20, its first session since Friday’s Constitution Day vacation. The index slid as low as 6,498 factors earlier than paring some losses.
The drop pushed the index greater than 25% under its June peak, assembly the brink for a technical bear market. Chip-sector jitters compounded with an escalating US-Iran battle to drive the slide.
Chip Stocks Swing Hard on Reopening
Samsung Electronics and SK Hynix stock each opened down greater than 5% earlier than international buyers moved in. The Philadelphia Semiconductor Index shed 4.3% whereas Korean markets stayed shut for the vacation final Friday. Rising competitors from Chinese AI fashions added additional strain on the reminiscence chip commerce.
Foreign investors net bought 278.4 billion gained ($187.1 million) in early buying and selling, concentrated in electronics shares. Retail buyers internet bought 300.8 billion gained over the identical window. Han Ji-young, a researcher at Kiwoom Securities, said the decline displays how far main shares have fallen.
“Since July, the KOSPI has dropped by about 25% from its peak, coming into a technical bear market. A pointy decline of 30–40% in main shares such as Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics is amplifying the sense of decline.”
Won Slides as Middle East Risk Builds
The won-dollar charge opened at 1,488.3, extending its slide whereas oil prices climbed on fears that the battle may disrupt the Strait of Hormuz. The stronger greenback added to import-price strain already constructing after the Bank of Korea’s first rate hike since 2023.
Analysts see this week’s US hyperscaler earnings as the following catalyst. Alphabet experiences July 22, with Microsoft, Meta, and Amazon following earlier than month’s finish. Their capital spending outlooks may decide whether or not chip shares discover a flooring or prolong the slide.
The publish KOSPI Falls Over 4% as Trading Resumes After Holiday, Deepening Bear Market appeared first on BeInCrypto.
