KOSPI reversed an early gain to close down more than 1% on Friday, while Japan's Nikkei also gave back its opening advance, as a selloff in memory chip stocks deepened. Weak overnight trading on Wall Street added to the pressure.
Memory Chip Stocks Extend Their Slide
The KOSPI opened 1.1% higher at 6,365.07 and climbed to 6,415.60 before sliding to 6,221.60, down 74.79 points, or 1.19%, from Thursday's close of 6,296.39. The Nikkei opened above its previous close at 65,746.13, then reversed to 65,193.16, losing 489.88 points, or 0.75%. The index ranged between 64,651.49 and 65,990.72.
SK Hynix sank 4.82% to 1,423,000 won, leading the decline among chipmakers. Kioxia, the Japanese flash-memory maker, dropped 2.03% to 47,750 yen. SoftBank Group slid 3.69% to 5,485 yen. Samsung Electronics, however, bucked the trend, adding 0.43% to 231,500 won.
The selloff follows a multi-week slump in memory chip stocks. Citigroup and Jefferies both cut price targets on memory stocks this week. SanDisk's quarterly results beat estimates but failed to lift the outlook, leading to conservative guidance. Goldman Sachs said fully priced valuations leave chipmakers vulnerable to sharp drops.
Wall Street's Weak Close Weighs on Sentiment
US markets closed lower Thursday, with the Nasdaq down 0.06%, the S&P 500 off 0.18%, and the Dow falling 0.85%, snapping a five-session winning streak. The pullback in Asia came despite better-than-expected US jobless claims, which came in at 199,000 for the week ending August 1, slightly below forecasts and pointing to a strong labor market.
That strength complicates the picture for investors, as it could keep the Federal Reserve on a tighter path. For now, traders are focused on the immediate drag from chip valuations.
Strait of Hormuz Talks Still Unresolved
Elsewhere, traders are keeping an eye on US and Iran negotiations over reopening the Strait of Hormuz. The two sides have not yet finalized terms, and the unresolved situation adds a layer of uncertainty to oil prices and regional stability. Market participants are watching for any progress, though no timeline has been set for a deal.
With the memory chip selloff showing no signs of abating and geopolitical tensions simmering, Asian markets are likely to remain volatile in the near term.
