Tech stocks rebound after global rout; Samsung jumps 9%
Asia's technology stocks mostly rebounded on Wednesday amid choppy trading following a global selloff in the previous session.
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Images of mobile devices at the Taiwan Semiconductor Manufacturing Co. (TSMC) Museum of Innovation in Hsinchu, on Tuesday, Jan. 11, 2022.
I-Hwa Cheng | Bloomberg | Getty Images
Asia's technology stocks mostly rebounded on Wednesday amid choppy trading following a global selloff in the previous session.
Shares of South Korean chip heavyweights Samsung Electronics rose more than 9%, while SK Hynix added 2.7%. Both stocks plunged over 12% in the previous session.
Samsung Electronics and SK Hynix are major constituents of the benchmark Kospi Index, which was up more than 3%.
Other South Korean technology names were mixed, with Samsung SDI up more than 4% and Seoul Semiconductor advancing 5%.
In Japan, chip-equipment maker Advantest was down 0.51%, while SoftBank Group added 1.84%. Tokyo Electron was down 3%.
Chinese technology stocks also delivered mixed results. Tencent was up 3.52%, Baidu climbed 2.2%, Xiaomi added 0.71%, while JD.com was down 2.35%.
SoftBank and Advantest shares year-to-date.
Stateside shares of Micron rose 4.5% in premarket trading, and Sandisk was up 3.4%. The two memory stocks has tumbled 13% in the previous session. The Roundhill Memory ETF (DRAM), down 14% in the regular session, moved 4.7% higher in premarket trade.
European chip stocks mostly steady, with some edging higher. ST Microelectronics was up 1.73%, ASML rose 0.72%, Infineon gained 0.88% and Besi 0.3%. ASM International was down 0.72%.
Wedbush Securities' Dan Ives said recent channel checks across Asia and enterprise AI demand trends showed "no cracks in the armor," arguing that the selloff in South Korean technology stocks was more likely a pause after a near 100% rally in the Kospi this year, rather than a sign of weakening fundamentals.
The recovery followed a bruising session on Wall Street, where technology stocks extended a global selloff that began in Asia a day earlier.
The Nasdaq Composite fell 2.2%, and the Philadelphia Semiconductor Index slid as investors dumped chipmakers and AI-linked stocks. Memory chip maker Micron Technology and Sandisk dropped 13%, while Intel, Advanced Micro Devices and Qualcomm each lost more than 5%.
