Korean stocks avoided a sharp decline on July 17 as the market was closed for Constitution Day, while US semiconductor stocks plummeted the previous day. SK Hynix American Depositary Receipts (ADR) fell 13.69% on July 16 (local time) in New York, alongside declines in NVIDIA (-2.40%) and Alphabet (-4.4%). The closure shielded Korean investors from immediate losses that hit Japanese and Taiwanese markets, where the Nikkei225 index dropped 4.03% and Taiwan's index fell 6.47%. Korean retail investors expressed relief on social media, though concerns remain about Monday's market opening.
US Semiconductor Stocks Record Sharp Declines on July 16
On July 16 (local time), the New York stock market witnessed significant losses across semiconductor stocks. SK Hynix ADR fell 13.69%, while NVIDIA declined 2.40% and Alphabet dropped 4.4%. Memory-related stocks also recorded substantial losses, with Micron falling 5.65%, SanDisk declining 12.63%, Seagate dropping 10.00%, and Western Digital falling 9.15%.
Japanese and Taiwanese Markets Experience Heavy Losses
The semiconductor stock decline immediately impacted Asian markets on July 17. Japan's Nikkei225 index fell 4.03% and dropped more than 6% during trading hours, marking the fifth-largest single-day decline on record. Semiconductor company Kioxia Holdings plummeted 16.1% to 52,110 yen, approximately half its record high from the previous month. The decline was attributed to the US semiconductor stock crash and a US court patent infringement compensation ruling. Tokyo Electron fell 8.17% and Advantest declined 7.2%.
Taiwan's market also suffered despite TSMC announcing second-quarter results that exceeded market expectations. Semiconductor-related stocks fell sharply, causing the Taiwan index to drop 6.47%.
Korean Investors React to Constitution Day Market Closure
Korean investors posted messages on social media platforms expressing relief about the Constitution Day closure. Comments included statements such as "Constitution Day saved KOSPI" and "Constitution Day rescued us from a major crash." However, concerns emerged about the impact when markets reopen on Monday. Investors posted comments including "Constitution Day held strong but it will be reflected on Monday," "the closure only delayed the shock by one day," "let's make Monday a temporary holiday too," and "let's open the market when Nasdaq futures hit 30,000."
SK Group Chairman Addresses Memory Chip Demand Outlook
SK Group Chairman Choi Tae-won provided reassurance to investors at the Korea Chamber of Commerce and Industry summer forum on July 17. Choi stated, "Memory will continue to be needed, so if you give it time, it will trend upward." He added, "I don't know what the stock price will be next month, but instead of buying and selling, holding on to it is a good way to preserve your assets."
Choi further commented, "AI is still a four-year-old child, but memory will continue to be needed for it to become an adult." He predicted, "Demand will inevitably increase exponentially in the future."
FAQ
Why did Korean stocks avoid losses on July 17?
Korean stocks avoided immediate losses because the market was closed for Constitution Day on July 17, the same day that Japanese and Taiwanese markets experienced sharp declines following the US semiconductor stock crash on July 16.
How much did SK Hynix ADR fall on July 16?
SK Hynix American Depositary Receipts (ADR) fell 13.69% on July 16 (local time) in the New York stock market, alongside declines in other major semiconductor stocks.
