Asian technology stocks recovered Wednesday morning after global markets faced heavy selling the previous day, causing major indexes to decline.
In South Korea, semiconductor stocks led the market rebound at the opening, with Samsung Electronics rising more than 9% and SK Hynix gaining over 4%. This was a partial recovery following a more than 12% drop for both companies during Tuesday's trading.
Both Samsung and SK Hynix are large-cap stocks with significant weight in South Korea's benchmark KOSPI Index, which rose more than 3% Wednesday after plunging 10% the day before.
At the same time, Samsung SDI shares increased 2.6%, while Seoul Semiconductor rose 2.7%.
The rebound extended to Japan's tech sector, with Advantest, a chip equipment maker, up 0.6%, SoftBank Group rising 1.5%, and Lasertec increasing by 0.3%.
According to CNBC, Wedbush Securities analyst Dan Ives said channel checks across Asia and AI demand trends in business show no worrying signs for the industry.
He sees the recent sell-off in South Korean tech stocks as merely a market correction after the KOSPI nearly doubled this year, rather than a sign of weakening business fundamentals.
Asia's market recovery followed a difficult session in U.S. markets the night before, where tech stocks continued to face heavy selling amid a global sell-off that began in Asia the prior day.
The Nasdaq Composite fell 2.2%, and the Philadelphia Semiconductor Index also declined as investors rushed to sell chip and AI stocks.
Among memory chip makers, shares of Micron Technology and SanDisk dropped about 13%, while Intel, Advanced Micro Devices (AMD), and Qualcomm all fell more than 5%.
Overall, despite ongoing profit-taking and investor concerns globally, Asia's markets are showing signs of recovery, particularly South Korea's semiconductor stocks regaining some confidence after steep declines the previous day.
. Source:CNBC
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