Samsung Electronics and SK Hynix climbed alongside a broader South Korean rally Tuesday, even as futures pointed toward a weaker Wall Street open following the Labor Day Weekend.
Wall Street reopens Tuesday after the holiday to a tougher macro backdrop. Last week, the 10-year Treasury yield climbed to its highest level since November 2023, and the 2-year note touched a January 2025 high, as investors weighed the risk that persistent inflation could keep the Federal Reserve cautious.
Kospi Extends AI-Driven Rally
The Kospi rose 1.25% to 7,083.84 by late morning in Seoul, building on Monday’s advance of more than 4%, its sharpest single-day move in months, as investors bet that artificial intelligence-related earnings would keep beating expectations.
Samsung Electronics gained 1.48% to 274,000 won, while SK Hynix jumped 3.65% to 1,848,000 won. State-run Korea Electric Power Co. added 3.82%, and refiner SK Innovation rose 1.6%.
Hyundai Motor and LG Energy Solution slipped, while the won firmed to 1,338.55 per dollar. Japan’s Nikkei 225 fell 0.95% and the small-cap Kosdaq Index rose 0.46%. This underscores how unevenly the AI trade is playing out across the region.
The move follows a recent chip stocks offset Iran tensions report and comes as Goldman Sachs strategist Timothy Moe holds a bullish long-term Kospi target tied to a memory chip earnings recovery.
Wall Street Braces as Oil Climbs
US index futures signaled a rougher start. Dow futures fell 308 points, or 0.6%, and oil prices touched six-week highs. It comes after Iran and the United States exchanged strikes over the weekend, with Brent crude up 1.1% to $97.31 a barrel.
Rising energy costs are stoking inflation concerns ahead of Thursday’s wholesale and Friday’s consumer price reports.Traders are pricing roughly a 60% chance of a quarter-point Federal Reserve rate hike at next week’s meeting.
The divergence leaves Seoul’s chip-led rally as one of the few bright spots. This is as the markets head into a week dominated by inflation data and Middle East risk.
The post Samsung, SK Hynix Lead Kospi Higher as Wall Street Faces Tough Opening After Labor Day appeared first on BeInCrypto.
Source: https://beincrypto.com/samsung-sk-hynix-lead-kospi-rally/
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