Japan, South Korea Stocks Stage V-Shaped Reversal as Seoul Urgently Pledges Support; Kospi Narrowly Holds 6,500 as Samsung, SK Hynix Pare Losses

TradingKey - Reports of US semiconductor tariffs trigger dive in Japan-South Korea stock markets; South Korean presidential office defuses crisis to stabilize market; KOSPI narrowly holds 6,500 level as Samsung and SK Hynix losses narrow.

During Asian trading hours on September 3, under the dual impact of news regarding US semiconductor tariff policies and swift government efforts from both countries to defuse the situation, Japanese and South Korean stock markets experienced sharp volatility. After opening higher and fluctuating in the morning, markets plunged rapidly in the afternoon before rebounding to form a distinct V-shaped trend.

Among them, the KOSPI closed up 0.26% at 6,579.48 points, narrowly holding above the 6,500 mark. However, both major heavyweight stocks closed lower: Samsung Electronics fell 0.2% to close at 250,000 KRW, while SK Hynix fell 1.05%, dropping below the 1.6 million mark to close at 1,596,000 KRW.

KOSPI Index Chart, Source: TradingView

The Nikkei 225 Index fell 0.17% to close at 64,214.26 points, once again falling below the 65,000 mark. However, both major heavyweight stocks gained: Kioxia rose 1.31% to close at 51,670 JPY, while SoftBank rose 1.56%, reclaiming the 5,000 mark to close at 5,001 JPY.

In morning trading, Japanese and South Korean stock markets both opened higher, with South Korea's KOSPI and the Nikkei 225 both gaining about 1%, mainly driven by stable sentiment in overseas markets overnight and market expectations for a tech stock rebound. However, during afternoon trading, rumors suddenly surfaced that the US might impose tariffs or further restrictions on overseas semiconductors, leading chip giants led by Samsung Electronics and SK Hynix to sharply narrow their gains or turn negative, causing the South Korean KOSPI Index to plunge in the afternoon and dragging the Nikkei 225 Index into negative territory as well.

Following the market plunge, the South Korean presidential office and its financial and diplomatic teams immediately issued urgent statements, saying the government was actively communicating and coordinating with the US side and would make every effort to prevent US semiconductor tariff measures from adversely impacting domestic companies, allowing the stock market to rebound in late trading and narrow its losses.