{"id":128052,"date":"2026-06-05T09:38:00","date_gmt":"2026-06-05T05:38:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=128052"},"modified":"2026-06-05T10:54:15","modified_gmt":"2026-06-05T06:54:15","slug":"kospi-craters-6-as-samsung-and-sk-hynix-plunge-boj-rate-hike-bets-and-tech-selloff-wallop-asia","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/kospi-craters-6-as-samsung-and-sk-hynix-plunge-boj-rate-hike-bets-and-tech-selloff-wallop-asia\/06\/05\/market-updates\/","title":{"rendered":"KOSPI Craters 6% as Samsung and SK Hynix Plunge: BOJ Rate Hike Bets and Tech Selloff Wallop Asia"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>KOSPI worst performer:<\/strong> South Korea&#8217;s index plunged as much as 6%, with Samsung and SK Hynix each sinking over 8%.<\/li>\n\n\n\n<li><strong>Labor minister shocks markets:<\/strong> South Korea&#8217;s Labor Minister called on major tech firms to share more AI profits with suppliers, subcontractors, and workers.<\/li>\n\n\n\n<li><strong>Samsung-union deal:<\/strong> Minister Kim Young-Hoon helped broker a last-minute pay deal with Samsung, averting a strike with bumper memory chip worker payouts.<\/li>\n\n\n\n<li><strong>Nikkei falls 1.6%:<\/strong> Japanese tech and chip names led the decline after a strong recent run-up.<\/li>\n\n\n\n<li><strong>TOPIX holds flat:<\/strong> Industrials and consumer stocks helped the broader index weather the tech selloff.<\/li>\n\n\n\n<li><strong>BOJ rate hike fears intensify:<\/strong> Governor Ueda signaled this week the BOJ will discuss raising rates in June; stronger-than-expected April wage data reinforced that view.<\/li>\n\n\n\n<li><strong>Nasdaq 100 futures down 1%:<\/strong> Tech continues to face selling pressure; S&amp;P 500 futures shed 0.5%.<\/li>\n\n\n\n<li><strong>Wall Street mixed overnight:<\/strong> Investors rotated out of tech and into more economically sensitive sectors.<\/li>\n\n\n\n<li><strong>Hang Seng falls 0.8%:<\/strong> Hong Kong tech shares dragged the index lower.<\/li>\n\n\n\n<li><strong>China in tight range:<\/strong> CSI 300 and Shanghai Composite moved little.<\/li>\n\n\n\n<li><strong>ASX 200 falls 0.6%:<\/strong> Australia&#8217;s index retreated.<\/li>\n\n\n\n<li><strong>Iran war uncertainty lingers:<\/strong> Little progress toward a comprehensive peace deal amid renewed Middle East hostilities this week.<\/li>\n\n\n\n<li><strong>Nonfarm payrolls the key event:<\/strong> May jobs data due later Friday for Fed rate clues.<\/li>\n\n\n\n<li><strong>RBI decision ahead:<\/strong> India&#8217;s central bank widely expected to hold rates but may signal dovish tones given Iran war economic headwinds.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Asian stocks mostly retreated on Friday as investors locked in recent profits in the technology sector and pivoted into more economically sensitive names.<\/p>\n\n\n\n<p>This trend saw Japanese and South Korean markets clock deep losses, especially as chipmaking and artificial intelligence shares extended recent declines. Japanese shares were also pressured by increasing speculation that the Bank of Japan will raise interest rates later this month.<\/p>\n\n\n\n<p>Regional markets took a middling lead-in from Wall Street, which ended mixed overnight as investors sold tech and bought into more economically sensitive sectors. Tech appeared set for more losses, with Nasdaq 100 futures falling nearly 1% in Asian trade, while S&amp;P 500 futures shed 0.5%.<\/p>\n\n\n\n<p>Market focus was on upcoming U.S. nonfarm payrolls data for May, due later in the day, for more cues on the world&#8217;s largest economy.<\/p>\n\n\n\n<p>Uncertainty over the U.S.-Iran war also remained in play amid little progress toward a comprehensive peace deal, and renewed hostilities in the Middle East this week.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">South Korea&#8217;s KOSPI Slides on Chips and Tech Losses<\/h2>\n\n\n\n<p>South Korea&#8217;s KOSPI was by far the worst performer in Asia, losing as much as 6% as local chipmakers fell sharply.<\/p>\n\n\n\n<p>Samsung Electronics Co Ltd and SK Hynix Inc sank over 8% apiece, although they did recoup some of their initial losses.<\/p>\n\n\n\n<p>South Korean markets were also spooked by Labor Minister Kim Young-Hoon telling Reuters that the country&#8217;s biggest tech firms should share more of their artificial intelligence profits with suppliers, subcontractors, and workers.<\/p>\n\n\n\n<p>Hoon had helped broker a last-minute pay deal between Samsung and a major union, helping avert a strike and delivering bumper payouts to the company&#8217;s memory chip workers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nikkei Hit by Tech Losses and BOJ Rate Hike Speculation<\/h2>\n\n\n\n<p>Japan&#8217;s Nikkei 225 also underperformed, losing 1.6% on losses in local tech and chipmaking names \u2014 a sector that had staged a strong run-up in recent weeks on AI optimism.<\/p>\n\n\n\n<p>Chip and AI majors including SUMCO Corp., Ibiden Co Ltd, and Renesas Electronics Corp were the worst performers on the Nikkei.<\/p>\n\n\n\n<p>The broader TOPIX index was flat on Friday, aided by gains in industrials and consumer stocks.<\/p>\n\n\n\n<p>Japanese markets were also pressured by increased speculation over a BOJ rate hike in June, especially after Governor Kazuo Ueda signaled earlier this week that the central bank will discuss raising rates later in the month.<\/p>\n\n\n\n<p>Stronger-than-expected wage income data for April \u2014 released on Friday \u2014 pointed to the BOJ having more headroom to raise rates. Wages and inflation are the central bank&#8217;s two main considerations for its rate decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Broader Asia Mostly Lower<\/h2>\n\n\n\n<p>Broader Asian markets were mostly lower. Hong Kong&#8217;s Hang Seng index fell 0.8%, also pressured by losses in tech, while China&#8217;s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes kept to a tight range.<\/p>\n\n\n\n<p>Australia&#8217;s ASX 200 fell 0.6%, while Singapore&#8217;s Straits Times Index shed 0.1%.<\/p>\n\n\n\n<p>Futures for India&#8217;s Nifty 50 index pointed to a flat open ahead of a Reserve Bank of India rate decision later in the day. The central bank is widely expected to leave rates unchanged, but may strike a dovish chord in the face of increasing economic headwinds from the Middle East war.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways KOSPI worst performer: South Korea&#8217;s index plunged as much as 6%, with Samsung and SK Hynix each sinking over 8%. Labor minister shocks markets: South Korea&#8217;s Labor Minister called on major tech firms to share more AI profits with suppliers, subcontractors, and workers. Samsung-union deal: Minister Kim Young-Hoon helped broker a last-minute pay &hellip;<\/p>\n","protected":false},"author":9,"featured_media":31994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,39,36],"tags":[6849,6851],"class_list":["post-128052","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-global-stock-markets","category-market-updates","tag-asia","tag-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128052"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128052\/revisions"}],"predecessor-version":[{"id":128053,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128052\/revisions\/128053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31994"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}