SK Hynix Up 12%, Samsung Up 9%: Why US Bonds Move Korean Chips

SK Hynix jumped 12% and Samsung Electronics gained 8.9% on Thursday, pushing South Korea’s Kospi up 6.13%. The rally didn’t start with a chip headline. It started with the US bond market, which has experienced volatility in recent days.

Not to mention the highly volatile Korean markets, driven by a number of factors related to AI. The SK Hynix Buyback First, SK Hynix disclosed plans to repurchase and cancel 40 trillion won ($28.8 billion) of its own shares.

No Korean company has ever announced a buyback this large. The move would retire about 3.3% of outstanding shares. Fewer shares outstanding lifts earnings per share and return on equity, two metrics investors watch closely.

Kiwoom Securities analyst Han Ji-young said the buyback should support the stock structurally. SK Hynix saw a huge jump at the opening of trading.