Shanghai-listed shares of Chinese chipmaker Wingtech plunged 10% Tuesday, hitting the daily limit for a second straight session after the Dutch government took control of its Netherlands-based subsidiary Nexperia.
The Netherlands’ Minister of Economic Affairs revealed on Oct. 12 that the decision, made under the “Goods Availability Act” on the company in September, was intended “to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency.”
Nexperia specializes in the high-volume production of chips used in automotive, consumer electronics and industrial products, making it vital for maintaining Europe’s technological supply chains.
In South Korea, the benchmark Kospi index reversed course to end 0.63% lower at 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 up more than 20%, and Tongyang Inc soaring nearly 30%.
Shares of LG Energy Solution closed 6.94% higher, rallying for a second straight session after the battery maker estimated its third-quarter operating profit will rise 34%, boosted by U.S. demand for electric vehicles ahead of a Sept. 30 phaseout of government incentives.
Samsung Electronics’ stock erased its earlier gains, closing 1.82% lower after the company projected a 32% rise in third-quarter profit year on year, at 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 Ministry of Commerce Tuesday sanctioned five U.S.-related units of Hanwha Marine Corporation.
The move was a direct retaliation to the U.S.’ investigation of Chinese maritime, logistics and shipbuilding industries, which the ministry said “seriously violate international law and basic norms governing international relations, and severely damage the legitimate rights and interests of Chinese companies.”
The order, set to take effect on Oct.14, will prohibit organizations and individuals in China from doing business with the sanctioned companies, the statement said.
Meanwhile, the small-cap Kosdaq also reversed course to drop 1.46% at 847.96.
Japan’s benchmark Nikkei 225
SoftBank’s shares extended their declines, falling 6.14% after its subsidiary, British chip designer Arm, was reported to be working with OpenAI on its deal with Broadcom, according to tech publication The Information. On Monday stateside, OpenAI and Broadcom made their partnership official to build and deploy 10 gigawatts of artificial intelligence accelerators starting late next year.
India’s benchmark Nifty 50 traded 0.55% lower, while the Sensex index was down 0.53%. Shares of LG Electronics India skyrocketed 50% on debut, building on 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.
Hong Kong’s Hang Seng Index
Singapore’s economy grew 2.9% in the third quarter, preliminary government data showed Tuesday, faster than the 1.9% expected by economists polled by Reuters. The economy expanded by 4.4% in the second quarter.
U.S. equity futures were little changed in early Asian hours. On Monday stateside, the key benchmarks recovered a significant chunk of their losses suffered last week after U.S. President Donald Trump softened his stance on China.
Following a slew of tit-for-tat trade restrictions and heated exchanges, Trump said, “Don’t worry about China, it will all be fine!” in a Truth Social post Monday.
Earlier Tuesday, Beijing confirmed it had begun collecting the port fees on U.S.-linked vessels, in retaliation for the U.S. decision to charge Chinese ships docking at American ports from 12:01 a.m. EDT the same day.
Overnight, the Dow Jones Industrial Average closed higher by 587.98 points, or 1.29%, to 46,067.58, which equates to 67% of its Friday loss. The S&P 500 rose 1.56% to finish at 6,654.72, retracing 56% of its prior decline. The Nasdaq Composite popped 2.21% to settle at 22,694.61 as beaten-down technology stocks led the bounce.
— CNBC’s Dylan Butts, Anniek Bao, Lee Ying Shan, Alex Harring, Sarah Min and Fred Imbert contributed to this report.
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