Korean semiconductor stocks up as U.S. inflation stabilizes

[Graphics by Song Ji-yoon]

South Korean semiconductor stocks rose collectively in the Thursday morning session as stable U.S. inflation data revived risk appetite and expectations of profits from the U.S. pressure on China rose.

SK hynix Inc. shares traded at 192,500 won ($142.55) as of 9:12 a.m. on Thursday, up 3.89 percent from the previous trading session. The stock rose by more than 4 percent to 194,000 won shortly after the market opened, hitting a new 52-week high.

Samsung Electronics Co. also saw its shares gain 1.53 percent to 79,500 won after rising to 83,000 won at one point in the morning.

Stocks related to high-bandwidth memory (HBM) such as DI Corp. (11.52 percent), DIT CO. (8.86 percent), AUROS Technology Inc. (7.26 percent), STI Co. (4.43 percent), EO Technics Co. (4.09 percent), and Genesem Inc. (4.12 percent) all trended upwards.

The simultaneous rise in semiconductor stocks was driven by a return to risk appetite as the U.S. April Consumer Price Index (CPI) report released on Wednesday met market expectations. The Korean stock market was closed on that day for a public holiday.

U.S. tech stocks such as Nvidia Corp. (3.6 percent), Advanced Micro Devices Inc. (AMD). (4.3 percent), and Broadcom Inc. (4.1 percent) rose on that day as inflation concerns, which had been limiting upward pressure on the stock market, were alleviated, leading to a 2.9 percent increase in the Philadelphia Semiconductor Index.

Some analysts also believe that the expected increase in semiconductor tariffs on China from the U.S. and other countries boosted investment sentiment for Korean semiconductor stocks, as Korean companies will likely benefit from the move.

Meanwhile, cosmetic stocks also surged in early trading on Thursday, buoyed by strong first-quarter performances.

Shares of Hankook Cosmetics Manufacturing Co. traded at 36,700 won as of 9:14 a.m., up 8,450 won, or 29.91 percent, from the previous day and hitting the price limit. Hankook Cosmetics Co. also saw its shares rise by 1,830 won, or 24.08 percent, to 9,430 won, while those of It‘S Hanbul Co. Ltd. were up 1,750 won, or 12.44 percent, to 15,820 won. Shares in Jayjun Cosmetic Co. also saw a significant increase of 480 won to 9,300 won, up 5.44 percent.

Industry insiders predict that the improvement in the cosmetics industry will continue due to expectations of a recovery in the Chinese economy and as companies diversify their export destinations.