The rebound in Korean and Japanese chip stocks shows how quickly sentiment can rotate on a single overnight catalyst, in this case the Broadcom-Apple supply deal and reports China may allow limited Nvidia H200 purchases, even as the broader macro backdrop stays fragile. The split reaction within each market, chipmakers surging while autos, real estate and transport lagged, suggests investors are treating this as a sector-specific rally rather than a genuine risk-on shift. Oil’s climb on renewed US-Iran hostilities is doing real work in the background, pushing Japanese government bond yields to a fresh multi-decade high and keeping rate-sensitive and energy-consuming sectors under pressure. That tension, chip-led optimism against oil-driven inflation risk, looks set to keep both markets choppy until there’s more clarity on the Iran situation.
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Chip stocks pulled Korea and Japan higher, but oil risk kept a lid on the broader rally.
Summary:
- South Korea’s Kospi rose around 2.5% on Thursday, rebounding from a roughly seven-week low hit the previous session, according to Reuters
- SK Hynix jumped around 7%, Samsung Electronics gained about 2.5% and LG Energy Solution rose roughly 2.7%
- Hyundai Motor and Kia both fell, down around 2.5% and 4.6% respectively, while POSCO Holdings and Samsung BioLogics also slipped
- Foreigners were net buyers of Korean shares worth roughly 280 billion won, while the won weakened slightly against the dollar
- Japan’s Nikkei climbed around 1.5% in morning trade, snapping a three-day losing streak, with the broader Topix up modestly
- Kioxia surged roughly 9%, Advantest gained around 6% and Fujikura advanced about 5%, anchoring the Nikkei’s rise
- Oil prices rose around 1% on renewed US-Iran hostilities, pushing Japan’s benchmark 10-year JGB yield to a fresh multi-decade high and weighing on transport and real estate shares
South Korean and Japanese equities rebounded on Thursday, with chipmakers in both markets tracking an overnight rally in US semiconductor stocks, even as rising oil prices tied to renewed US-Iran hostilities kept a lid on broader sentiment, according to Reuters.
South Korea’s Kospi rose around 2.5%, bouncing back from a roughly seven-week low hit in the previous session after three straight days of declines that had left the index down more than a fifth from its late-June record peak. The rebound was led by chipmakers, with SK Hynix jumping around 7% and Samsung Electronics gaining roughly 2.5%, while LG Energy Solution added about 2.7%. Not every sector joined in, however: Hyundai Motor and Kia both fell, down around 2.5% and 4.6% respectively, while POSCO Holdings and Samsung BioLogics also slipped. Foreigners were net buyers of Korean shares worth roughly 280 billion won, even as the won weakened slightly against the dollar.
Japan’s Nikkei climbed around 1.5% in morning trade, breaking a three-day losing streak, with the broader Topix also higher. As in Korea, chip-related names anchored the gains, with flash memory maker Kioxia surging roughly 9%, chip-testing equipment maker Advantest rising around 6%, and optical fibre producer Fujikura up about 5%. The rally traced back to a more than $30 billion chip-supply agreement between Broadcom and Apple, along with a report that China may allow its top AI firms to buy a limited number of Nvidia’s H200 chips.
Geopolitical risk kept the mood in check on both markets. President Trump’s declaration that the interim agreement ending the war with Iran was over, followed by fresh US military strikes aimed at keeping the Strait of Hormuz open, pushed oil prices up around 1%. That, in turn, drove Japan’s benchmark 10-year government bond yield to a fresh multi-decade high on renewed inflation concerns, weighing on rate-sensitive sectors including real estate, transport and air transport shares.
This article was written by fl6553e4b45d84486a91658a8b3f02bf22 at investinglive.com.
