Journalist
Lee Hugh
=
-
Wall Street Rallies on Extended Iran Ceasefire, Earnings Optimism; S&P 500 and Nasdaq Hit Records President Donald Trump’s extension of a ceasefire with Iran, combined with optimism about corporate earnings, helped lift U.S. stocks to a strong finish on April 22. While Middle East tensions have not fully eased, investors focused more on the ceasefire holding and signs of improving profits than on the immediate risk of a wider war. The Dow Jones Industrial Average rose 340.65 points, or 0.69%, to 49,490.03. The S&P 500 gained 73.89 points, or 1.05%, to 7,137.90, and the Nasdaq climbed 397.60 points, or 1.64%, to 24,657.57. The S&P 500 and Nasdaq both closed at record highs. One driver was the ceasefire extension. Reuters reported that after Pakistan-mediated talks, Trump extended the ceasefire until Iran’s proposal is submitted and consultations are completed. The move did not mean a peace deal was imminent. With the U.S. blockade on Iran continuing and Iran maintaining a hard-line response, markets priced in some chance of de-escalation but did not fully dismiss regional risks. Earnings expectations also supported sentiment. LSEG estimates U.S. companies’ first-quarter profit growth at about 14%. Technology and semiconductor shares led the advance. Micron Technology jumped 8.48%, and the S&P 500 technology sector index rose 2.31%. The Philadelphia Semiconductor Index extended its winning streak to 16 sessions. GE Vernova gained after raising its annual revenue outlook, and Boeing rose after reporting a smaller-than-expected loss. United Airlines fell 5.58% on concerns tied to its earnings outlook. Middle East uncertainty remained. The AP reported that Iran fired on three vessels in the Strait of Hormuz and seized two. With the U.S. maintaining its blockade and maritime clashes adding to tensions, uncertainty around negotiations increased again. Oil prices, trading around $100 a barrel, also remained a potential source of stock-market volatility. Stephen Massocca, a senior vice president at Wedbush Securities, told Reuters that “corporate earnings have been good so far,” adding that “if the war drags on, that trend could weaken, but there are still many undervalued stocks in the market.”* This article has been translated by AI. 2026-04-23 08:15:19 -
UPDATE: Korea's Q1 GDP strongest in more than five years on hot chip demand *Updated with additional information and market response SEOUL, April 23 (AJP) — South Korea’s economy grew at the fastest pace in more than five years in the first quarter, rebounding sharply from a contraction in the previous three-month period, as feverish demand for semiconductors powering the artificial intelligence boom fueled exports and investment. According to the Bank of Korea, gross domestic product expanded 1.7 percent on quarter in the January–March period, marking the strongest growth since a 2.2 percent gain in the third quarter of 2020. The rebound follows a 0.3 percent contraction in the fourth quarter of last year, when a slump in construction investment weighed on overall activity. The KOSPI heavily led by chip stocks hit new heights, climbing above 6,500 mark by gaining 1.7 percent upon opening thanks to stronger-than-expected growth data and SK hynix earnings report. The Korean won also strengthened, with the dollar at 1,478.20, down 1.3 from overnight. Exports surged 5.1 percent on quarter, led by semiconductors and IT products, as global demand for high-performance memory chips used in AI servers and data centers remained robust. Semiconductor exports have been soaring at triple-digit rates in recent months amid the AI investment boom, underscoring their role as the economy’s main growth engine. Facility investment rose 4.8 percent as companies ramped up spending on machinery and transportation equipment to expand production capacity, particularly in chipmaking and related industries. Construction investment, long a drag on growth, also showed signs of recovery, rising 2.8 percent on quarter, supported by base effects and a modest pickup in both building construction and civil engineering projects. A broad upward trend was also observed across various sectors. Manufacturing GDP, the backbone of the Korean economy, climbed 3.9 percent, on brisk activity on the assembly lines for computers, electronics, and optical instruments. This marks the first time the manufacturing sector has surpassed the 3 percent growth threshold since the first quarter of 2022, aided by the semiconductor boom and a base effect following a 1.5 percent decline in the previous quarter. Construction GDP also rose 3.9 percent, ending a period of stagnation or decline. It is the first time since the first quarter of 2024 that the construction sector has recorded a growth rate above 1 percent. The agriculture, forestry, and fisheries sector increased 4.1 percent, led by crop production, marking two consecutive quarters of growth. The domestic demand, however, remained fragile. The services sector added 0.4 percent and private consumption 0.5 percent. Real gross domestic income (GDI), which reflects actual purchasing power by factoring in terms of trade, recorded a steep 7.5 percent jump - the largest increase in 38 years, since the 8 percent rise seen in the first quarter of 1988. The surge is attributed to a significant improvement in the terms of trade, as export prices and volumes spiked by 28.7 percent and 23 percent in March - also driven by chips. 2026-04-23 08:09:19 -
Korea Stocks Hit Record, but Gains Concentrate in Samsung Electronics and SK Hynix ◆Aju Economy Top News ▷"Korea market sees only semiconductors"…70% of foreign buying flows to Samsung and SK Hynix; ETFs also dominated by chips -Korea’s benchmark KOSPI has set a record and moved above 6,400, but the rally has been concentrated in semiconductor heavyweights such as Samsung Electronics and SK Hynix, fueling concerns about market crowding. -Combined, the two companies now account for more than 40% of total market capitalization and have made up more than 55% of this year’s increase in KOSPI market value, effectively driving the index higher. -This month, 41% of net institutional buying and about 70% of net foreign buying went into Samsung Electronics and SK Hynix, underscoring chip-centered flows. -The trend has also spread to the ETF market, where products with large semiconductor exposure have grown quickly as asset managers roll out new funds and competition intensifies. -A leveraged ETF tied to Samsung Electronics and SK Hynix is scheduled to launch next month, a move expected to deepen the concentration. Expectations for wider AI adoption and improved earnings have supported semiconductor strength. ◆Key Reports ▷Japan equity strategy: Focus returns to earnings -Japanese stocks plunged after the U.S.-Iran war, then staged a swift V-shaped rebound to record highs as ceasefire talks advanced and risk appetite returned. -The rebound followed a valuation reset and was led by markets with solid profit momentum. East Asian equities, including Japan, and semiconductor-led IT shares drove gains. -Looking ahead, Japan’s market may be influenced by events including Bank of Japan policy, U.S.-Iran negotiations and earnings season, but the broader direction is expected to hinge on corporate results. -Semiconductors, defense and banks are projected to account for about 61% of this year’s EPS growth, with expanding AI investment and government policy support reinforcing growth momentum in semiconductor-heavy IT. -However, despite wage gains, improvements in consumption and retail indicators have been limited, while energy prices and external risks remain a burden, potentially delaying a broader rally into domestic-demand sectors. ◆Major disclosures after the close (22nd) ▷SK Hynix: 265.8 billion won cash dividend ▷LG Display: 1.1 trillion won investment in OLED infrastructure ▷Kyobo No. 16 SPAC: Trading halt to be lifted on the 23rd ▷Exchange: Trading halt for Ponylink shares ▷SI Resource: Shift to a co-CEO structure with Jeon Sun-ok and Choi Kyung-duk ▷Finger: Decision on a 30 billion won third-party allotment capital increase ◆Fund flows (as of the 21st, excluding ETFs) ▷Domestic equity funds: +21.4 billion won ▷Overseas equity funds: -10.3 billion won ◆Key events today (23rd) ▷South Korea: Consumer sentiment index (April), GDP growth rate (Q1) ▷United States: New home sales, Chicago Fed National Activity Index* This article has been translated by AI. 2026-04-23 08:07:08 -
iM Securities Raises Unid Target Price 10% on Fertilizer Supply Concerns iM Securities on the 23rd raised its target price for Unid to 110,000 won from 100,000 won, citing expectations that global fertilizer supply disruptions will lift selling prices. It maintained a “buy” rating. Analyst Jeon Yu-jin said price increases have continued since the second half of 2025 as China’s potassium chloride supply tightened. She added that the Iran situation has disrupted supplies of nitrogen (N) and phosphate (P) fertilizers, expanding substitution demand for potassium (K) fertilizers. “Additional selling-price increases and higher sales volumes are expected,” she said. Unid posted first-quarter consolidated operating profit of 25.5 billion won, up 236% from the previous quarter, but slightly below the market consensus of 27.0 billion won. Operating profit at its South Korean unit rose 200% to 12.3 billion won on higher volumes after scheduled maintenance ended and the absence of one-off costs. A weaker won also supported profitability, the report said. Results improved sharply at the China unit. Sales volume dipped somewhat due to the Lunar New Year, but operating profit surged 373% to 12.3 billion won as caustic potash prices rose on tight potassium chloride supply and chlorine prices stayed firm. Losses in the chlorine business, a key drag in the past, are also narrowing quickly, it said. For the second quarter, iM Securities forecast operating profit of 35.0 billion won, up 37% from the prior quarter and above the market estimate of 32.3 billion won. It expects lower volumes in South Korea due to customers adjusting operating rates, but said that would be offset by higher volumes and prices at the China unit and continued strength in chlorine prices. The report also cited instability in the Middle East as a supportive factor. After the Iran situation, disruptions to supplies of nitrogen and phosphate fertilizers such as ammonia and urea have tightened the global fertilizer market. While not a perfect substitute, rising demand for potassium fertilizers could add to upward price pressure, it said.* This article has been translated by AI. 2026-04-23 08:06:19 -
DS Investment Raises Samsung Biologics Target Price to 2.1 Million Won, Keeps Buy Rating DS Investment & Securities on Wednesday maintained its “buy” rating on Samsung Biologics and raised its target price to 2.1 million won from 1.3 million won, citing steady growth after first-quarter results broadly matched market expectations. . Analyst Kim Min-jung said Samsung Biologics posted 2026 first-quarter revenue of about 1.2571 trillion won, up 25.8% from a year earlier, and operating profit of about 580.8 billion won, up 35.1%. Operating margin was 46.2%. The results were in line with prior market forecasts of 1.2797 trillion won in revenue and 590.2 billion won in operating profit. Kim said plants 1 through 4 were running at full capacity and previously deferred revenue was recognized, supporting the quarter’s performance. She added that the 180,000-liter Plant 5 is expected to begin contributing to revenue in the second half of this year, with structural operating-profit growth anticipated from 2027. The purchase price for GSK’s U.S. plant was finalized at $353 million — $280 million for the facility and $73 million for inventory and spare parts — and revenue from the plant is expected to be reflected starting in the second quarter. The acquisition is expected to be consolidated into results and could be a key driver for upward earnings revisions, Kim said. On a separate basis, Kim projected Samsung Biologics’ full-year 2026 revenue at 5.3843 trillion won and operating profit at 2.6772 trillion won, up 18.2% and 28.2%, respectively, from the previous year. DS Investment said the company’s medium- to long-term growth outlook remains intact. Samsung Biologics recently applied to the Incheon Free Economic Zone Authority for a permit to build Plant 6, aiming to break ground within the year and complete construction in 2027. It also plans to accelerate expansion of domestic production facilities following completion of the U.S. plant acquisition and easing uncertainty over tariffs. Kim said the U.S. plant has capacity of about 60,000 liters, with orders already secured for about 50% of that capacity. She said additional orders could leave room for higher revenue estimates. Kim added that while the stock has been weak in the short term due to labor-management disputes, concerns about production disruptions are overdone and core processes are expected to remain stable. * This article has been translated by AI. 2026-04-23 08:00:18 -
SK hynix Q1 profit nearly doubles from last best Q4 to record $25 bn SEOUL, April 23 (AJP) - SK hynix, a front-runner in high-bandwidth memory (HBM) chips designed for AI accelerators, delivered its best-yet quarter ended March with its three-month operating profit nearly doubled from the previous best and its top-line also at a record high. According to its disclosure Thursday, SK hynix’s quarterly operating profit of 37.61 trillion won ($25.4 billion) came in well above the market consensus of 34.9 trillion won compiled by FnGuide, nearly doubling its previous quarterly high of 19.17 trillion won in the fourth quarter of 2025 and 405 percent from a year ago. The red-hot performance follows a strong earnings signal from rival Samsung Electronics, which earlier projected first-quarter operating profit of 57.2 trillion won, surpassing its full-year 2025 income of 43.6 trillion won. The unprecedented earnings underscore SK hynix’s pricing power and dominance in the HBM segment, where demand has surged alongside the rapid expansion of artificial intelligence infrastructure by global hyperscalers. Revenue also hit a record of 52.57 trillion won, rising 60 percent from the previous quarter and 198 percent from a year earlier. 2026-04-23 07:59:23 -
SK hynix posts record Q1 operating profit of 37.61 trillion won on 52.58 trillion won revenue SK hynix said on the 23rd it posted first-quarter revenue of 52.5763 trillion won and operating profit of 37.6103 trillion won, for an operating margin of 72%. Net profit was 40.3459 trillion won, a net margin of 77%. On a quarterly basis, revenue topped 50 trillion won for the first time. Operating profit and the operating margin were also the highest since the company was founded, at 37.6 trillion won and 72%, respectively. Operating profit roughly doubled from the previous quarter, underscoring a sharp improvement in profitability. “Despite the seasonal off-peak in the first quarter, demand remained strong as AI infrastructure investment expanded,” SK hynix said, adding that it “continued its earnings uptrend by increasing sales of high value-added products such as HBM, high-capacity server DRAM modules and eSSD.” Cash and cash equivalents at the end of the first quarter rose 19.4 trillion won from the end of the previous quarter to 54.3 trillion won. Borrowings fell 2.9 trillion won to 19.3 trillion won, resulting in net cash of 35 trillion won, the company said. SK hynix said it sees AI evolving from training large models to an “agentic AI” stage, where real-time inference is repeatedly performed across a range of service environments, broadening the base of memory demand across both DRAM and NAND. It also said the spread of memory-efficiency technologies should improve the economics of AI services and expand overall service scale, further supporting memory demand. On that basis, it forecast a favorable pricing environment for both DRAM and NAND to continue. The company said it will keep developing and supplying new products across DRAM and NAND to meet increasingly diverse memory demand. For high-bandwidth memory, it said it will further strengthen overall execution capabilities integrating performance, yield, quality and supply stability. In DRAM, it will step up supply of LPDDR6 using the world’s first 10-nanometer-class sixth-generation (1c) process, and of the 192-gigabyte SOCAMM2, which began mass production this month based on the same process. In NAND, it said it has begun supplying the consumer SSD (cSSD) “PQC21,” which applies CTF-based 321-layer quad-level cell (QLC) technology. It added it will respond flexibly to AI demand with an enterprise SSD (eSSD) lineup spanning high-performance triple-level cell (TLC) and high-capacity QLC across the full eSSD range. It also said it plans to strengthen competitiveness in AI data center and AI PC storage markets by leveraging synergies with Solidigm, where it has strengths in high-capacity QLC eSSD. SK hynix said that as customer demand continues to exceed supply capacity, securing the ability to supply in line with structural demand growth in the AI era has emerged as a key competitive edge. It said this year’s investment will rise sharply from last year, driven by the M15X ramp-up, infrastructure preparations centered on the Yongin cluster, and securing key equipment such as EUV tools. “We will strategically expand our production base to respond proactively to mid- to long-term demand growth,” SK hynix said. “Through investment that reflects demand visibility, we will secure both supply stability and financial soundness.”* This article has been translated by AI. 2026-04-23 07:54:21 -
Track Obstruction at Oido Station Delays 9 Seoul Subway Line 4 Trains A track obstruction disrupted service at Oido Station on Seoul Metropolitan Subway Line 4. Yonhap News Agency reported that the problem occurred at about 4:18 a.m. Thursday at Oido Station on the Ansan Line in Siheung, south of Seoul, delaying nine trains by 10 to 30 minutes. KORAIL said an initial response team was dispatched and service returned to normal at about 6:08 a.m. It said trains were running normally but some residual impact could continue into the morning commute.* This article has been translated by AI. 2026-04-23 07:51:14 -
Korea's consumer confidence turns negative from energy concerns SEOUL, April 23 (AJP) -South Korea's consumer confidence turned negative for the first time in a year, weighed down by worries over supply-side repercussions on inflation and economic performance from a Gulf-triggered energy shock, data showed Thursday. According to the Bank of Korea (BOK), the consumer sentiment index for April dipped 7.8 points to 99.2, the first time below the 100 threshold in a year. A reading below 100 indicates pessimism outweighs optimism compared with the long-term average. The monthly fall is the steepest since December 2024 amid the shock from a brief martial-law declaration. The drop was broad-based, reflecting a sharp deterioration in both household finances and perceptions of the broader economy. Sub-indices tracking household conditions all weakened. The index for current living standards fell 3 points to 91, while expectations for future living conditions dropped 5 points to 92. Outlooks for household income and spending also declined, each falling 3 points to 98 and 108, respectively. Perceptions of the economy turned decisively dimmer. The index measuring current economic conditions plunged 18 points to 68, while the outlook for future conditions dropped 10 points to 79. Job prospects also deteriorated, with the employment outlook index down 7 points to 82. The data underscore how external shocks are increasingly feeding into domestic sentiment, as households brace for a combination of rising costs and slowing growth. Inflation concerns intensified. The expected inflation rate for the coming year rose to 2.9 percent, up 0.2 percentage point from the previous month, with the anticipation for price rise spiked 4 points to 153 whereas that for income stayed stagnated at 120 to suggest bias for tightening in spending. Consumers pointed overwhelmingly to energy-linked costs as the main driver of price pressures. Petroleum products were cited by 88.8 percent of respondents as the key factor influencing inflation expectations, followed by industrial goods at 33.1 percent and public utilities at 31.4 percent. The surge in energy-related concerns comes amid heightened volatility in global oil markets following disruptions in the Middle East, reinforcing fears of cost-push inflation rippling through the economy. Interest rate expectations also moved higher, with the index climbing 6 points to 115, reflecting growing anticipation that borrowing costs could remain elevated or rise further. The April survey was conducted from April 9 to 16 among 2,262 households nationwide. 2026-04-23 07:36:42 -
USFK commander says wartime OPCON transfer conditions targeted by early 2029 Xavier Brunson, commander of the Combined Forces Command and U.S. Forces Korea, said on April 22 (local time) that the allies have submitted a roadmap to the Defense Department aimed at meeting the conditions for transferring wartime operational control before the second quarter of fiscal 2029, which corresponds to the first quarter of 2029 in South Korea. According to Yonhap News Agency, Brunson made the remarks while testifying before the U.S. House Armed Services Committee, responding to a question from committee Chairman Mike Rogers, a Republican, about preparations for the OPCON transfer. The U.S. government’s fiscal 2029 runs from Oct. 1, 2028, to Sept. 30, 2029. The second quarter of fiscal 2029 covers January through March 2029. Brunson’s comments suggest a timetable to satisfy the conditions for the transfer no later than the first quarter of 2029. President Lee Jae-myung has said he aims to achieve the transfer during his term. The first quarter of 2029 overlaps with the end of President Donald Trump’s term, which runs through Jan. 20 that year, and the start of the next U.S. president’s term. The U.S. side may have drafted the roadmap with the possibility in mind that meeting the conditions could carry over into the next administration. Brunson said the allies would continue pursuing a conditions-based transfer and ensure all requirements are met. 2026-04-23 06:39:19