Chinese semiconductor maker Wingtec’s Shanghai-listed shares plunged 10% on Tuesday, hitting the daily limit for the second day in a row after the Dutch government took control of its Netherlands-based subsidiary Nexperia.
On October 12, the Dutch Economy Minister clarified that the decision made against the company in September based on the Availability of Goods Act was aimed at “preventing situations in which the products (finished and semi-finished products) produced by Nexperia become unavailable in the event of an emergency.”
Nexperia specializes in the mass production of chips used in cars, consumer electronics and industrial products, making it essential to maintaining Europe’s technology supply chain.
In South Korea, the benchmark Kospi index rose 1.01% to an all-time high of 3,646.67. The construction and mining sectors led the index’s rise, with Korea Zinc rising 17.95% and Dongyang surging 17.49%.
LG Energy Solutions shares soared more than 7%, rising for a second consecutive day of trading after the battery maker expected third-quarter operating profit to rise 34%, boosted by U.S. electric vehicle demand ahead of the phase-out of government subsidies on Sept. 30.
Samsung Electronics expects third-quarter profit to rise 32% year-on-year to about 12.1 trillion Korean won ($8.48 billion), exceeding LSEG Smart Estimates’ 10.1 trillion won and rising 2.47%.
Shares in shipping company Hanwha Ocean fell as much as 8% after China imposed sanctions on five U.S.-related units of Hanwha Marine Corp., the Commerce Department said on Tuesday.
The move was in direct retaliation for the US investigation into China’s shipping, logistics and shipbuilding industries, which the ministry said was a “serious violation of international law and the fundamental norms governing international relations, and seriously undermines the legitimate rights and interests of Chinese companies.”
The order, which is scheduled to take effect on October 14, will prohibit Chinese organizations and individuals from doing business with sanctioned companies, the statement said.
Meanwhile, the small-cap Kosdaq rose 0.84%.
Japanese benchmark Nikkei Stock Average The index fell by 1.34%, and TOPIX fell by 1.31%.
According to technology magazine The Information, SoftBank shares fell more than 5% after SoftBank subsidiary Arm, a British chip design company, is working on a deal with OpenAI and Broadcom. On Monday, OpenAI and Broadcom formally announced a partnership to build and deploy a 10 gigawatt artificial intelligence accelerator starting late next year.
India’s benchmark Nifty 50 index and Sensex index were flat. LG Electronics India’s stock price soared 50% upon its debut, with the initial public offering having the strongest demand for an IPO in India since 2008.
Australia’s ASX/S&P 200 was flat.
hong kong Hang Seng Index The Hang Seng Tech Index rose 0.9% to open 0.75% higher. Mainland China’s CSI 300 rose 0.87%.
Singapore’s economy grew by 2.9% in the third quarter, ahead of the 1.9% forecast by economists polled by Reuters, preliminary government figures released on Tuesday showed. Economic growth in the second quarter was 4.4%.
US stock futures were little changed in the first half of Asian trading. In the United States on Monday, major benchmarks regained a significant portion of the losses suffered last week after US President Donald Trump softened his stance on China.
After repeated retaliatory trade restrictions and heated exchanges, President Trump said, “Don’t worry about China, everything will be fine!” In Monday’s Truth Social post.
China has been collecting port fees on U.S. ships in retaliation for similar charges imposed on Chinese ships by the U.S. government. Both rates are scheduled to begin on Tuesday.
Overnight, the Dow Jones Industrial Average rose 587.98 points, or 1.29%, to end at $46,067.58, representing 67% of Friday’s decline. The S&P 500 rose 1.56% to end at 6,654.72, recouping 56% of its previous loss. The Nasdaq Composite Index soared 2.21% to settle at 22,694.61 as losing tech stocks led the gains.
—CNBC’s Dylan Butts, Anniek Bao, Lee Ying Shan, Alex Harring, Sarah Min and Fred Imbert contributed to this report.
