Samsung Electronics, SK hynix rebound after sharp sell-off

Samsung Electronics Co. and SK hynix Inc. rose early Wednesday, recovering from steep losses in the previous session.

Samsung Electronics shares were up 3.23 percent at 239,500 won ($178) as of 9:14 a.m., while SK hynix rose 2.43 percent to 1.48 million won.

The two stocks plunged 7.39 percent and 10.09 percent, respectively, on Tuesday, prompting bargain hunting amid perceptions that the declines had been excessive.

Overnight, all three major U.S. stock indexes closed lower, with the Dow Jones Industrial Average falling 0.35 percent, the S&P 500 slipping 0.02 percent, and the Nasdaq Composite losing 0.15 percent.

However, losses narrowed toward the end of the session as remarks by New York Federal Reserve President John Williams put downward pressure on U.S. Treasury yields. Williams said another rate hike this year could be appropriate, but further increases might not be needed next year.

Among semiconductor stocks, memory and storage companies including Micron Technology Inc., which fell 3.62 percent, SK hynix’s U.S.-listed American depositary receipts, down 3.19 percent, and Western Digital, down 1.61 percent, declined. AI chipmaker Nvidia Corp. rose 0.97 percent, limiting the Philadelphia Semiconductor Index’s loss to 0.23 percent.

Foreign investors were net buyers of 59 billion won worth of shares on the main bourse, while retail investors and institutions sold a net 73.4 billion won and 14.2 billion won, respectively.

In the electrical and electronics sector, foreign investors and institutions bought a net 21.8 billion won and 11.7 billion won, respectively. Retail investors sold a net 60.4 billion won, while other corporate entities purchased a net 27.3 billion won.

Separately, Korean steelmakers rose early Wednesday after the White House’s new spokeswoman said Korea would invest in an Alaska liquefied natural gas (LNG) project.

Shares of TCC Steel Co. were up 7.29 percent at 14,130 won. HiSteel Co. gained 6.55 percent, Nexteel Co. rose 4.55 percent, and SeAH Steel Holdings advanced 3.82 percent.

At her first official briefing on Tuesday, local time, White House spokeswoman Katie Zacharia said Korea would invest $54 billion in the Alaska LNG development project.

Seoul, however, has stressed that a review of the project’s commercial viability has only just begun and that no investment decision has been made.

Korean rechargeable battery stocks, in the meantime, rose broadly early Wednesday on growing expectations for stronger demand for energy storage systems (ESS).

Samsung SDI Co. rose 3.75 percent to 581,000 won as of 9:25 a.m. LG Energy Solution Ltd. gained 1.95 percent, POSCO Future M Co. advanced 4.12 percent, LG Chem Ltd. rose 2.48 percent, and L&F Co. climbed 4.12 percent.

Battery stocks have held up relatively well even as the Kospi has suffered steep losses recently amid weakness in semiconductor heavyweights Samsung Electronics and SK hynix.

“AI-driven electricity demand is fueling structural growth in the ESS market,” said Yoo Ji-woong, an analyst at Daol Investment & Securities Co. “Earnings across the battery sector are expected to improve more substantially from next year as ESS market growth coincides with a recovery in electric-vehicle demand.”