The Korea Composite Stock Price Index (KOSPI) is showing weakness around the 2460 level during the trading session. This is interpreted as an influx of cautious sentiment due to signs of escalating trade conflicts between the United States and China. In particular, the semiconductor stocks are declining sharply in response to news of U.S. government restrictions on the export of NVIDIA AI chips to China.
According to the Korea Exchange and others on the 16th, the KOSPI index recorded 2467.22, down 10.19 points (0.41%) from the previous session as of 11 a.m. The index started at 2472.78, down 4.63 points (0.19%) from the previous session, and fell to as low as 2459.66 during intraday trading.
Foreign investors have led the index decline by net selling 245.4 billion won worth of stocks. Institutions are also net selling 3.7 billion won. Although pension funds are net buying 9.4 billion won, both financial investment and trusts are in a "sell" position. Individuals are reported to be net selling 220.9 billion won worth of stocks.
Reports emerged the previous day that China ordered a halt to the delivery of aircraft from Boeing, and on this day, news was transmitted that the U.S. government imposed restrictions on the export of NVIDIA's low-cost AI chip "H20" to China, leading market participants to keep an eye on the trade conflict developments.
Han Ji-young, a researcher at Kiwoom Securities, noted, "Despite the ongoing positive factors such as news of tariff negotiations and strong earnings from U.S. banking stocks, the adverse situation stemming from NVIDIA has caused volatility," stating, "NVIDIA's stock price plummeted by more than 5% in after-hours trading due to concerns over poor performance."
Currently, major semiconductor stocks, including Samsung Electronics and SK hynix, regarded as leaders in the KOSPI market, are experiencing weakness due to the effects of NVIDIA. SK hynix's stock price, in particular, is down more than 3%. The stock prices of HANMI Semiconductor and ISU PETASYS are also declining.
During the trading session, among the top 10 market capitalization stocks in the KOSPI, price increases were limited to three stocks: Hanwha Aerospace, Celltrion, and HD Hyundai Heavy Industries. The automotive stocks that surged the previous day, including Hyundai Motor and Kia, are also declining today.
At the same time, the KOSDAQ index is down 3.59 points (0.50%) to 708.33. The index started at 710.38, down 1.54 points (0.22%) from the previous session, and continued to trend negatively. Similar to the KOSPI, foreign investors are net selling 110 billion won worth of stocks.
Among the top 10 market capitalization stocks, 8 stocks including Alteogen, ECOPRO BM, Ecopro, Rainbow Robotics, LigaChem Biosciences, PharmaResearch, and Kolon TissueGene are declining. The stock prices of HUGEL and CLASSYS are showing strength.