Asian markets reversed early gains on Friday as the KOSPI fell over 1%, while the Nikkei 225 dropped slightly as memory chip stocks extended a multi-week selloff. The KOSPI opened 1.1% higher at 6,365.07 points but reversed to 6,221.60, down 74.79 points, or 1.19%, from Thursday's close of 6,296.39. The Nikkei 225 opened higher at 65,746.13, above Thursday's close of 65,683.04, then reversed to 65,193.16, down 489.88 points, or 0.75%. The session ranged between 64,651.49 and 65,990.72. SoftBank Group, a top Nikkei 225 constituent, slid 3.69% to 5,485 yen, while SK Hynix led KOSPI decliners, sinking 4.82% to 1,423,000 won. Samsung Electronics bucked the trend, adding 0.43% to 231,500 won. The declines extended a broader repricing that has driven a sharp SanDisk stock selloff over the past month.
The memory chip selloff intensified as Citigroup and Jefferies cut price targets on memory stocks this week, following conservative guidance from SanDisk. Kioxia, a Japanese flash-memory maker, dropped 2.03% to 47,750 yen earlier in Friday's session. Goldman Sachs said fully priced valuations leave chipmakers vulnerable to sharp drops, noting that even slightly conservative guidance can trigger a selloff despite strong headline results. The benchmark KOSPI remained down 4.2% for the week and was on course for a third straight weekly decline, while the KOSPI had also come under pressure from the unwinding of leveraged positions in semiconductor stocks, as investors reassess whether major data centre operators can sustain heavy spending on artificial intelligence.
Among heavyweight stocks, Samsung Electronics gained 0.43% while SK Hynix slipped 4.82%, as reported by latest market data. Battery maker LG Energy Solution advanced 2.03%, showing resilience in the energy sector. However, automakers faced pressure with Hyundai Motor falling 2.13% and affiliate Kia Corp declining 0.97%. Steelmaker POSCO Holdings rose 1.72%, while Samsung BioLogics edged down 0.13%. Market breadth remained positive with 478 stocks advancing against 360 declines out of 894 issues traded. Foreign investors were net buyers of shares worth 287.8 billion won (about $202.3 million), providing some support to the market despite the overall weakness.
Wall Street closed lower across the board Thursday, weighing on Asian sentiment. The Nasdaq Composite slipped 0.06% and the S&P 500 fell 0.18%, while the Dow Jones Industrial Average snapped a five-session winning streak with a 0.85% drop. US jobless claims for the week ending August 1 came in at 199,000, slightly below forecasts, pointing to continued labor market strength. Traders were also watching the Middle East as the United States and Iran have not yet finalized terms to reopen the Strait of Hormuz. Whether the KOSPI and Nikkei stabilize may hinge on memory chip earnings and progress in the Hormuz talks.
In the currency market, the South Korean won was quoted at 1,423.8 per dollar on the onshore settlement platform, marginally stronger than its previous close of 1,424.1, according to Reuters. Offshore, the currency traded at 1,422.7 per dollar, while the one-month non-deliverable forward contract was quoted at 1,421.8. So far this year, the KOSPI has gained 49.67%, while the won has appreciated 1.1% against the U.S. dollar. In the bond market, September futures on three-year treasury bonds slipped 0.02 points to 103.37, while the yield on the most liquid three-year Korean treasury bond was unchanged at 3.747%, and the benchmark 10-year yield held steady at 4.184%.
