Asian equities reversed early gains on Friday as South Korea’s KOSPI fell 1.19% to 6,221.60 after peaking at 6,415.60 and Japan’s Nikkei dropped 0.75% to 65,193.16; SoftBank slid 3.69% to ¥5,485 and SK Hynix plunged 4.82% to ₩1,423,000 while Samsung rose 0.43% to ₩231,500. A multi-week memory chip selloff, analyst price-target cuts from Citigroup and Jefferies and Goldman Sachs warnings, together with weaker U.S. leads (Nasdaq -0.06%, S&P 500 -0.18%, Dow -0.85%) and US jobless claims of 199,000 for the week ending Aug 1, are weighing on sentiment and could increase downside risk for broader markets and crypto/DeFi liquidity.

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In Brief

KOSPI reversed its gains after touching a session high of 6,415.60.
In Japan, the Nikkei 225 also dropped as SoftBank slid 3.69%.
SK Hynix sank 4.82% amid a broader memory chip selloff.

Japanese and South Korean equities reversed early gains on Friday. The KOSPI fell over 1%, while the Nikkei 225 dropped slightly as well, as memory chip stocks extended a multi-week selloff.

SoftBank Group slid 3.69% and SK Hynix sank 4.82%, pressuring both benchmarks. Weak overnight trading on Wall Street compounded the pullback across Asian markets.

Asian Indexes Give Back Early Gains

The KOSPI opened 1.1% higher at 6,365.07 points. It rose as high as 6,415.60 before sellers took control. The index then fell to 6,221.60, down 74.79 points, or 1.19%, from Thursday’s close of 6,296.39.

KOSPI is down from yesterday, and falling. Image Source: Trading View

Japan’s Nikkei 225 followed a similar pattern. It opened higher at 65,746.13, above Thursday’s close of 65,683.04, then reversed to 65,193.16, down 489.88 points, or 0.75%. The session ranged between 64,651.49 and 65,990.72.

The Nikkei is holding below yesterday’s close. Image Source: Trading View

SoftBank Group, a top Nikkei 225 constituent, slid 3.69% to 5,485 yen. SK Hynix led KOSPI decliners, sinking 4.82% to 1,423,000 won. Samsung Electronics bucked the trend, adding 0.43% to 231,500 won.

Memory Chip Selloff Weighs on Sentiment

The declines extended a broader repricing that has driven a sharp SanDisk stock selloff over the past month. Kioxia, a Japanese flash-memory maker, dropped 2.03% to 47,750 yen earlier in Friday’s session.

Citigroup and Jefferies cut price targets on memory stocks this week. The move followed conservative guidance from SanDisk, whose quarterly results beat estimates but failed to lift its outlook.

Goldman Sachs said fully priced valuations leave chipmakers vulnerable to sharp drops. Even slightly conservative guidance can trigger a selloff despite strong headline results, the bank noted.

Wall Street closed lower across the board Thursday, weighing on Asian sentiment. The Nasdaq Composite slipped 0.06% and the S&P 500 fell 0.18%. The Dow Jones Industrial Average snapped a five-session winning streak with a 0.85% drop.

US jobless claims for the week ending August 1 came in at 199,000, slightly below forecasts. That points to continued labor market strength. Traders were also watching the Middle East. The United States and Iran have not yet finalized terms to reopen the Strait of Hormuz.

Whether the KOSPI and Nikkei stabilize may hinge on memory chip earnings and progress in the Hormuz talks.

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