Korean semiconductor stocks, which had fallen sharply over the previous three days, rebounded across the board in early trading on the 31st. As Samsung Electronics (005930.KS) and SK hynix (000660.KS) rose more than 20%, related stocks Samsung Electro-Mechanics and SK Square both hit their upper price limits, with buying spreading throughout the so-called "S7" stocks.
According to the Korea Exchange, as of 9:51 a.m. on the 31st, Samsung Electro-Mechanics traded at 1,142,000 won, up 29.92% from the previous session, while SK Square traded at 1,038,000 won, up 29.91%. Samsung Electronics traded at 254,250 won, up 22.83%, and SK hynix traded at 1.69 million won, up 27.84%. Samsung Electronics preferred shares rose 22.98%, Samsung Life Insurance gained 16.86%, and Hyundai Motor climbed 8.83%, with most of the top market-cap stocks showing strength.
The rebound is attributed directly to favorable winds from the United States. The Personal Consumption Expenditures (PCE) price index for June, released by the US Commerce Department, met market expectations without stoking inflation concerns. In addition, strong earnings from Microsoft (MS) and expectations for artificial intelligence (AI) investment drove New York semiconductor stocks to surge across the board.
The semiconductor sector, which had undergone a sharp correction on recent profit-taking, also posted a strong rebound. Micron rose 18.36%, SanDisk 25.99%, AMD 13.00%, and Intel 11.30%, while the Philadelphia Semiconductor Index jumped more than 8%, marking its largest gain since April last year. SK hynix's American Depositary Receipts (ADR) also surged 17.52%, recovering their offering price.
Domestically, SK Group Chairman Chey Tae-won's purchase of 3,620 shares of SK hynix common stock on the open market the previous day also helped improve investor sentiment. Market observers say the recovery from recent losses is proceeding rapidly, centered on semiconductors, as expectations for improvement in the US chip industry, responsible buying by management, and bargain-hunting following the recent plunge have combined. In particular, buying has spread to the so-called "S7" stocks, including Samsung Electronics, SK hynix, Samsung Electro-Mechanics, SK Square, Samsung Electronics preferred shares, Samsung C&T, and Samsung Life Insurance, with large-cap tech stocks leading the market's rebound in early trading.
