Stocks open lower on China's export curb on chip materials

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Stocks open lower on China's export curb on chip materials

Published: 06 Jul. 2023, 10:04

Screens in Hana Bank's trading room in central Seoul show foreign and stock markets open on Thursday. [YONHAP]

Stocks opened lower Thursday as large-cap tech stocks started weak on China's export restrictions of metals used in semiconductors sapped investor sentiment.

The Kospi dropped 17.26 points, or 0.67 percent, to 2,561.74 in the first 15 minutes of trading.

On Monday, China's commerce ministry announced restrictions on exporting gallium and germanium used in chips, solar panels and electric vehicles, starting Aug. 1, to protect its national security, requiring its exporters to apply for special state permits.

China is a major global producer and exporter of these materials.

Samsung Electronics fell 0.4 percent, and SK hynix slid 1.6 percent.

LG Energy Solution lost 0.3 percent, and Samsung SDI fell 1.3 percent.

Kia was among the few gainers in early morning trading, climbing 1 percent. Shipyard HD Hyundai Heavy Industries also rose 0.8 percent.

The local currency was trading at 1,305.6 won against the dollar at 9:15 a.m., up 7 won from Wednesday's close.

BY SOHN DONG-JOO, YONHAP [[email protected]]