Samsung shares plunge drags down regional tech stocks; analysts say this is a healthy correction for a distorted market

Golden Ten Data reported on July 7 that the Nikkei 225 Index fell more than 1.3% in early Tuesday trading, with semiconductor-related heavyweight stocks declining, as a drop in Samsung Electronics' share price dragged down regional technology stocks. Kazuaki Shimada, chief strategist at Iwai Cosmo Securities, said: "The market is closely watching Samsung Electronics' stock performance—although this memory chip maker's earnings exceeded market expectations, its share price actually fell." Shares of Japan's memory chip manufacturer Kioxia dropped more than 10%, while chip-related stocks such as Advantest and Tokyo Electron also declined. Shimada said: "This is a healthy correction to a distorted market. The market is selling chip-related stocks and buying value stocks that have become cheap."