SK Hynix Stock Soars Amid U.S. Tariff Exemption News

On April 10, 2025, the stock of SK Hynix surged significantly, reflecting a broader rally in the South Korean market, following a dramatic announcement from U.S. President Donald Trump. The semiconductor company’s shares were trading at 184,900 KRW at 8:08 AM, marking a 12.06% increase compared to the previous day. By 9:03 AM, this rise had escalated to 13.52%, with the stock reaching 187,300 KRW. The surge was largely attributed to Trump's decision on April 9 to grant a 90-day tariff exemption for countries excluding China, which ignited optimism among investors.

The U.S. stock market reacted positively to Trump's announcement, with the NASDAQ soaring by 12% and the S&P 500 rising over 9%, both marking their largest single-day increases since the financial crisis of 2008. This surge in the U.S. market set a buoyant tone for Asian markets, particularly in South Korea, where SK Hynix led the charge.

By 9:20 AM, SK Hynix was trading at 182,500 KRW, an increase of 12.24% from the previous day. The stock experienced significant volatility, triggering two stages of volatility easing measures shortly after the market opened. Other major stocks also saw gains, with Samsung Electronics and LG Energy Solution each rising by approximately 5%, while Hyundai Motor and HD Hyundai Heavy Industries increased by around 7%.

The overall market sentiment was bolstered by the expectation that the tariff exemptions would alleviate some of the economic pressures faced by companies in the semiconductor industry. The Philadelphia Semiconductor Index, which includes major players like Nvidia and Broadcom, surged by an astounding 18.73% on the same day, indicating a strong recovery in investor confidence.

According to Hana Securities researcher Kim Rok-ho, the anticipated increase in smartphone channel inventory due to China's equipment exchange support has led to an upward revision of SK Hynix's annual operating profit forecast. He adjusted the estimate from 33.07 trillion KRW to 36.02 trillion KRW, reflecting a 7% increase. Kim noted that the demand for High Bandwidth Memory (HBM) has differentiated SK Hynix's average selling price from its competitors, allowing for robust earnings even during typically weaker periods in the market.

As the day progressed, SK Hynix continued to demonstrate strength, trading at 184,300 KRW by 9:56 AM, which represented an 11.70% increase. The trading volume reached 2,907,597 shares, underscoring strong investor interest. This upward trend was attributed to the easing of trade war concerns, as Trump's administration clarified that only a basic tariff of 10% would be applied to countries other than China.

The market's optimistic outlook was not without caution. Analysts expressed mixed feelings about the sustainability of the rally. Lee Woong-chan from Hi Investment & Securities commented on the unpredictable nature of the market, stating, "Trump is forcibly raising the market," while urging investors to remain vigilant about economic indicators and corporate earnings reports in the coming months.

Seo Sang-young, a senior researcher at Mirae Asset Securities, echoed this sentiment, cautioning that while the tariff exemptions were a positive development, they did not eliminate the underlying economic challenges. He pointed out that a general tariff of 10% remains in place and that the risk of a recession in the U.S. economy continues to loom, suggesting that a more cautious approach to investing might be warranted.

In summary, the announcement of tariff exemptions has sparked a significant rally in both the U.S. and South Korean stock markets, with SK Hynix at the forefront of this movement. The broader implications of these developments will likely be monitored closely by investors and analysts alike, as they navigate the complexities of a rapidly changing economic landscape.