Japan and South Korea Stocks Close Lower as Nikkei 225 Drops Over 2%, Kospi Falls 1%, and Kioxia Tumbles Over 7%
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On August 18, Japanese and South Korean stock markets closed lower amid profit-taking in AI and memory sectors, with the Nikkei 225 dropping 2.54% and the KOSPI falling 1.55%. Technology equities faced notable declines, including Kioxia tumbling 7.58% and Samsung Electronics down 2.19%, though SK Hynix bucked the trend to rise 1.03%. Despite heightened short-term volatility, institutional sentiment remains constructive for mid-term South Korean equities. Morgan Stanley noted that the KOSPI has achieved a healthy recovery, with broadening market upside momentum and reduced overall risk levels across sectors.
TradingKey - On August 18, Japanese and South Korean stock markets closed lower across the board, with the Nikkei 225 Index (JPN225) closing down 2.54% at 67,460.73; South Korea's KOSPI Index closed down 1.55% at 6,869.80.
The South Korean market demonstrated a clear rally-and-retreat pattern, with the Korea Composite Stock Price Index (KOSPI) surging over 2% in early trading to reclaim the 7,100 mark before quickly reversing lower as selling pressure mounted.
Source: TradingView
South Korean semiconductor stocks showed divergent performance, with SK Hynix bucking the trend to rise 1.03%, closing at 1,662,000 won (about $1,177), while Samsung Electronics fell 2.19% to close at 268,500 won.
Japanese tech stocks registered steeper declines, with Kioxia tumbling 7.58% to close at 57,150 yen (about $358) and SoftBank Group dropping 0.95% to 5,830 yen. The previous rally driven by the AI and memory sectors experienced noticeable profit-taking today.
Despite heightened short-term volatility, institutions remain relatively optimistic about the mid-term outlook for South Korean equities. Morgan Stanley stated that as of mid-August, the KOSPI has completed a healthy recovery, with market upside momentum broadening beyond semiconductor stocks to wider sectors, while overall risk levels have also declined.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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