Samsung, SK Hynix Rise on U.S. Chip Rally as Oil Spike Caps Gains
Summary
- Samsung Electronics and SK Hynix posted modest early gains, supported by strength in U.S. semiconductor stocks.
- Intel, AMD, Broadcom, Seagate and SK Hynix ADRs all advanced, lifting the Philadelphia Semiconductor Index 1.3%.
- By contrast, international oil prices neared $100 a barrel, weighing on South Korean equities.
Forecast Trend Report by Period
Samsung Electronics and SK Hynix were trading modestly higher early on September 9, as strength in U.S. semiconductor shares was tempered by a sharp rise in global oil prices.
As of 9:11 a.m., Samsung Electronics was up 0.19% from the previous session at 270,000 won ($199). SK Hynix was trading 1.17% higher at 1,814,000 won ($1,338).
The gains came as buying flowed into South Korea's large-cap chipmakers after semiconductor stocks rose across the board in New York overnight. The Philadelphia Semiconductor Index climbed 1.3%.
Among individual stocks, Intel surged more than 9% on news that it plans to raise prices for PC central processing units by about 10% in October. AMD rose 5.90%, Broadcom gained 2.98%, and Seagate advanced 6.49%. SK Hynix's American depositary receipts also climbed 4.83%.
Rising oil prices, however, weighed on South Korean equities. Fighting intensified not only around the Strait of Hormuz but also along Red Sea shipping routes affected by Yemen's Houthi militants, bringing renewed attention to the risk of disruptions to Middle East crude shipments.
Supply concerns also increased after reports said a small Iranian oil tanker came under a U.S. missile strike near Kharg Island, a major hub for Iran's crude exports. International oil prices approached $100 a barrel. Brent crude for November delivery settled up 0.95% at $97.92 a barrel, while West Texas Intermediate for October delivery rose 1.69% to $93.03.
