Chip Stocks Slide on Fed Rate‑Hike Fears

Market Overview

Asian equity markets opened lower on Monday as technology‑heavy indices retreated. South Korea's KOSPI slipped 2.1%, Japan's Nikkei 225 fell 1.7%, and the broader TOPIX declined 0.7%.

Fed Rate‑Hike Expectations

Federal Reserve Chair Kevin Warsh said the Fed still has “work to do” if inflation is not firmly at the 2 % target, reviving expectations of a September rate increase. The probability of a September hike rose to 57 % from roughly 35 % before his Jackson Hole remarks, and the U.S. two‑year Treasury yield climbed to a one‑month high of about 4.33 %.

Oil Price and Risk‑Off Pressure

Crude oil prices jumped 5.14 % (LCO +5.14 %), adding risk‑off pressure to equity markets.

Impact on South Korean Chipmakers

SK Hynix dropped 3.5 % to 1.595 million won and Samsung Electronics fell 2.5 % to 250,500 won. The declines left SK Hynix down about 7.2 % and Samsung down 4.6 % for the month, despite earlier gains after Nvidia’s earnings.

Japanese Semiconductor and Electronics Stocks

In Japan, Kioxia Holdings rose 1.1 %, Sony increased 0.8 %, and Largan Precision climbed 3.3 %. Conversely, TDK fell 2.3 % and Murata Manufacturing slipped 4.1 %.

Outlook

Investors now await upcoming U.S. labour‑market and inflation data, which could confirm whether the heightened September‑rate‑hike expectations persist.