Japan and South Korea Stocks Close Lower as KOSPI Drops Below 5,500; Samsung and Kioxia Fall Over 1%, SK Hynix Bucks Trend

TradingKey - Japanese and South Korean stocks tumbled in volatile trading as KOSPI plunged below the 5,500 mark, while SK Hynix bucked the trend on a massive 16 trillion won special dividend.

During the Asian trading session on October 26, stock markets in Japan and South Korea attempted to find a bottom after opening lower in the morning, but selling pressure re-emerged after midday, leaving the market in a weak, volatile downward pattern at the close. Among them, the KOSPI fell 1.46% to close at 5,469.47 points, surrendering the 5,500 mark.

The two major heavyweights diverged. Market leader Samsung Electronics closed down 1.16% at 213,000 South Korean won, while SK Hynix bucked the trend on news of a massive special dividend of up to 16 trillion won, edging up 0.16% to close at 1,279,000 won.

KOSPI Index Chart, Source: TradingView

The Nikkei 225 Index extended its deleveraging slump from last Friday, closing down 0.8% at 62,189.60 points. Performance among two major heavyweights was mixed, with Kioxia tumbling 1.61% to end at 12,550 yen, while SoftBank rose 0.21% to close at 4,285 yen.

This Wednesday (October 28), SK Hynix will officially release its Q3 financial results and outline its 16 trillion won special dividend plan. Its earnings guidance will serve as a key bellwether supporting sentiment in Asian chip stocks. In addition, statements by companies such as Microsoft and Google this week regarding their 2027 AI infrastructure investments will directly dictate the trajectory of Japanese and South Korean semiconductor supply chains.