Asian stocks rebound as Treasury buybacks revive risk appetite; KOSPI surges

SK Hynix, a South Korean semiconductor company, announced a 40 trillion won (€25 billion) share buyback program to boost market valuation. The company plans to repurchase and cancel 24.1 million shares, citing undervaluation despite strong cash flow and growth prospects. The move follows a recent 10% share price drop amid market volatility. SK Hynix also raised its target for shareholder returns to over 50% of cumulative free cash flow.

Gold prices rose nearly 4% to $4,500 after the US Treasury announced it would double buybacks of longer-dated Treasuries, suppressing yields and weakening the US dollar. The move signaled government intervention to control bond markets, which could lead to a weaker dollar and potentially higher interest rates. The Fed's stance on inflation and rate hikes remains uncertain. Bitcoin and crypto-related stocks also saw gains.

SK Hynix and Samsung announced large shareholder return plans, with SK Hynix approving a $28.6B buyback and Samsung preparing a $72B return package. Micron, despite strong cash generation, has not followed suit, with minimal capital return. Micron's financials show significant cash reserves and flexibility, but structural differences and cyclical caution may delay any major shareholder returns.

SK Hynix shares rose 11% after announcing a $28.7B share buyback and cancellation plan, representing 3.3% of its total shares. The company cited undervaluation and strong cash position. It also raised its shareholder return target to over 50% of free cash flow for 2025-2027.

SK Hynix shares rose 8% after announcing a $28.6B share buyback and cancellation plan, the largest in South Korea. The company will repurchase 3.3% of outstanding shares, aiming to boost earnings per share. SK Hynix cited undervaluation and strong growth prospects, with plans to return over 50% of free cash flow from 2025-2027.

Samsung Electronics plans a 100 trillion won ($71.75B) shareholder return program, including a special dividend, according to MoneyToday. The move follows record profits driven by AI chip demand. Samsung aims to allocate 50% of free cash flow to returns. Competitor SK Hynix recently announced a 40 trillion won share buyback.