01.09.202502:21:33UTC+00South Korean Shares Slip as US Tech Selloff Hits Chipmakers

The KOSPI index saw a decline of 0.4% on Monday, closing around 3,170, as it continued to fall amid a significant sell-off in US technology stocks. The South Korean market, heavily reliant on exports to the United States, closely followed the downturn on Wall Street, especially among tech giants. Notably, Samsung Electronics dropped by 1.9%, and SK Hynix decreased by 3.8%. A combination of weak domestic economic data and ongoing tariff issues contributed to the market's cautious atmosphere. The manufacturing Purchasing Managers' Index (PMI) reflected contraction for the seventh month, posting a figure of 48.3 in August. Further weighing on trade sentiment were the 10% baseline tariffs introduced by the Trump administration. Although exports in August showed a year-on-year increase of only 1.3%, falling short of the expected 3% growth, there were contrasting performances within trade sectors. Exports to the US decreased by 12% due to steep tariffs, yet the semiconductor sector showed impressive growth with a surge in chip exports by 27.1%, reaching a record $15.1 billion. Additionally, exports of automobiles and ships also saw gains, with increases of 8.6% and 11.8% respectively. Despite the overall market weakness, Hyundai Motor provided some support with a modest rise of 0.7%, even as chemical and financial shares, along with chip manufacturers, faced challenges.