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Middle East tensions drag down Korean stocks; SK Hynix, Samsung under pressure

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Asian stock markets fell sharply on July 13, with South Korea's KOSPI down over 6% due to rising Middle East geopolitical risks.
  • Major South Korean chipmakers SK Hynix and Samsung Electronics saw significant stock price drops, falling over 10% and 6% respectively.
  • The decline is attributed to concerns over escalating conflict in the Strait of Hormuz and downward revisions of SK Hynix's profit forecasts.

Asian stock markets experienced a significant downturn on July 13, with South Korea's KOSPI index plummeting over 6% and briefly triggering a circuit breaker. The sell-off was largely driven by heightened geopolitical tensions in the Middle East, which dampened investor risk appetite.

The magistrate doesn't stand on stage issuing orders, but stands before the people to clarify the future and take problems back to solve.

— Yeh Chu-linExplaining his approach to governance during the campaign launch.

South Korea's leading memory chip manufacturers, SK Hynix and Samsung Electronics, were particularly hard hit. SK Hynix saw its stock price fall by more than 10% in intraday trading, reaching a low of 1.96 million won. This sharp decline contrasts with the strong performance of its American Depositary Receipts (ADRs) listed on the Nasdaq, which had previously surged over 12% on their debut.

Samsung Electronics also faced selling pressure, with its stock price dropping by approximately 6.4% at one point. Analysts suggest that Samsung's larger DRAM production scale may offer some resilience amid rising memory prices. However, the broader market sentiment, influenced by the Middle East conflict, overshadowed individual company strengths.

This election is not a party struggle, but a contest of governance capabilities; not about who represents which party, but who can truly lead Penghu into the next decade.

— Yeh Chu-linHighlighting his focus on administrative competence over political affiliation.

Market analysts attribute the steep drop in SK Hynix's shares primarily to the escalating conflict involving Iran's attacks on vessels in the Strait of Hormuz and subsequent US airstrikes. This has fueled concerns about a wider regional conflict, prompting investors to seek safer assets. Additionally, downward revisions of SK Hynix's profit forecasts by South Korean brokerages further exacerbated the selling pressure.

The magistrate of Penghu people should not just be a candidate arranged by a political party, but someone who truly understands Penghu and is willing to work hard for Penghu.

— Yeh Chu-linEmphasizing his commitment to local needs and understanding.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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