Samsung and SK Hynix Soar as Easing Inflation Revives Rate Cut Expectations

Samsung Electronics and SK Hynix led gains among South Korea's large-cap semiconductor stocks on August 14, as easing US inflation pressures revived hopes for rate cuts.

The Dow Jones Industrial Average gained 0.13%, the S&P 500 added 0.65%, and the Nasdaq rose 0.81% overnight on Wall Street, after producer price data reinforced the cooling inflation signal seen a day earlier in the consumer price index.

SanDisk surged 13.7% after saying long-term supply contracts are increasing amid strong demand for AI infrastructure, helping drive gains in chip shares. Micron Technology rose 4.2%, while SK Hynix's American depositary receipts climbed 7.29%.

Han Ji-young, an analyst at Kiwoom Securities, said South Korea's stock market is set to remain firm despite profit-taking after a recent rally and cautious positioning ahead of the holiday, supported by relief over the US July producer price index and optimism stemming from SanDisk.