Shanghai-listed shares of Chinese chip maker Wingtech fell 10% on Tuesday, hitting the daily limit for the second consecutive session after the Dutch government took control of Netherlands-based subsidiary Nexperia.
The Netherlands Minister of Economic Affairs revealed on 12 October that the decision taken on the company in September under the “Goods Availability Act” was intended to “prevent a situation in which goods (finished and semi-finished products) produced by Nexperia would become unavailable in an emergency.”
Nexperia specializes in high-volume production of chips used in automotive, consumer electronics and industrial products, making it vital to maintaining Europe’s technology supply chains.
In South Korea, the benchmark Kospi index fell 0.63% to 3,561.81 after hitting an all-time high of 3,646.67. The construction and mining sectors led gains on the index, with Korea Zinc rising more than 20% and Tongyang Inc rising nearly 30%.
Shares of LG Energy Solution closed up 6.94% after rising for a second straight session after the battery maker forecast its operating profit would rise 34% in the third quarter, boosted by US demand for electric vehicles ahead of the phase-out of government incentives on September 30.
Samsung Electronics’ stock erased its earlier gains, closing 1.82% lower after the company forecast a 32% year-on-year rise in third-quarter profit to about 12.1 trillion Korean won ($8.48 billion), beating LSEG SmartEstimates of 10.1 trillion won.
Shares of shipping company Hanwha Ocean pared earlier losses to 5.76% after China’s commerce ministry on Tuesday approved the divestiture of five US-related units of Hanwha Marine Corporation.
The move was a direct retaliation to the US investigation of China’s maritime, logistics and shipbuilding industries, which the ministry said, “seriously violates international law and basic norms governing international relations, and seriously harms the legitimate rights and interests of Chinese companies.”
The order, which will take effect October 14, will bar organizations and individuals in China from doing business with sanctioned companies, the statement said.
Meanwhile, small-cap Kosdaq also fell 1.46% to 847.96.
Japan’s benchmark Nikkei 225 The index closed down 2.58% at 46,847.32, while the Topix closed at 3,133.99, down 1.99%.
SoftBank shares fell 6.14% after its subsidiary, British chip designer Arm, was reported to be working with OpenAI on a deal with Broadcom, according to tech publication The Information. On Monday, OpenAI and Broadcom made official their partnership to build and deploy a 10 gigawatt artificial intelligence accelerator starting late next year.
India’s benchmark Nifty 50 was trading down 0.55%, while the Sensex index was down 0.53%. Shares of LG Electronics India surged as much as 50% on debut, following its initial public offering that saw the strongest demand for an Indian IPO since 2008.
Australia’s ASX/S&P 200 rose 0.19% to 8,899.4.
from hong kong Hang Seng Index It fell 1.74%, while the Hang Seng Tech Index fell 3.7%. Mainland China’s CSI 300 declined 1.2%.
Singapore’s economy grew 2.9% in the third quarter, preliminary government data showed on Tuesday, faster than the 1.9% expected by economists polled by Reuters. The economy grew 4.4% in the second quarter.
US equity futures were little changed in early Asian hours. On Monday, major benchmarks recovered a large part of their losses last week after US President Donald Trump softened his stance on China.
After tit-for-tat trade sanctions and heated exchanges, Trump said, “Don’t worry about China, everything will be fine!” In a Truth Social post on Monday.
Earlier on Tuesday, Beijing confirmed that it had started collecting port fees on US-bound vessels, in retaliation for a US decision to impose fees on Chinese ships docking at US ports, starting at 12:01 a.m. EDT the same day.
Overnight, the Dow Jones Industrial Average rose 587.98 points, or 1.29%, to close at 46,067.58, equal to 67% of Friday’s losses. The S&P 500 rose 1.56% to close at 6,654.72, giving back 56% of its previous decline. The Nasdaq Composite jumped 2.21% to close at 22,694.61 as technology shares offset losses.
— CNBC’s Dylan Butts, Annick Bao, Li Ying Shan, Alex Haring, Sarah Min and Fred Imbert contributed to this report.
