16.04.202501:00:18UTC+00South Korean Shares Fall as Chipmakers Drag

The KOSPI benchmark index declined by 0.6%, settling at approximately 2,464 points on Wednesday, reversing its previous session gains. This downturn was primarily driven by chipmakers, influenced by overnight declines in US semiconductor company Nvidia. Nvidia's stock fell roughly 6% in after-hours trading following the announcement of a $5.5 billion quarterly charge due to export restrictions affecting its chip sales to China and other nations. Concurrently, South Korea is seeking to bolster its shipbuilding and energy partnerships with the United States, as it prepares for upcoming tariff negotiations and aims to strengthen its position during the 90-day grace period. Among the major stocks, Samsung Electronics experienced a decrease of 1.7%, while competitor SK Hynix reported a 3.1% drop. Another sector impacted was the steel industry, with Korea Zinc falling by 1% and Hyundai Steel by 0.4%, due to an investigation initiated by Trump concerning potential tariffs on critical minerals. Conversely, gains were noted in battery producer LG Energy Solutions, up by 1.9%, and in the shipbuilding sector, with Hyundai Heavy Industries and Samsung Heavy Industries rising by 1.8% and 1.7%, respectively.