Chip Stocks Sold Off Amid Escalating Middle East Tensions, KOSPI Plunges Again

BlockBeats News, July 24th: Overnight, US chipmakers' stock prices fell, simultaneously affecting Asian stock markets. The South Korean KOSPI index fell by 6.1% on Friday, with both Samsung Electronics and SK Hynix falling by over 7%. The Korean Exchange temporarily halted program trading.

Over the past few weeks, in South Korea's $4.1 trillion stock market, the frequency of this security measure being triggered has been increasing. The Friday sell-off comes as investors seek to reduce risk ahead of the weekend, with Middle East tensions pushing oil prices to around $100 per barrel. After four consecutive days of net buying, global investors resumed selling in the Korean market, primarily reducing their holdings in tech stocks.

Shawn Oh, Head of Cash Equities at NH Investment & Securities in Korea, stated: "Due to ongoing Middle East tensions, local funds are reducing their tech stock holdings and lowering risk ahead of the weekend, and the downside risk seems to have been amplified."

Roy Lim, a Stock Sales Trader at Samsung Securities, mentioned that some Asian hedge funds are selling off Samsung and SK Hynix stocks to increase their holdings of China's Changxin Technology, which will be listed on July 27th.