US CPI Jump to 3.8% Raises Rate and Credit Risks for Korean Chip Sentiment

A report said Korean semiconductor investor sentiment is facing pressure after the US consumer price index rose 3.8% year on year in April and core inflation also showed signs of strain. The report noted that a polarized US economy is making it difficult for the Federal Reserve to judge whether to raise interest rates. It also pointed to a possible widening of the yield spread after the oil price surge triggered by the aftermath of the US-Iran war. If US credit risk rises further, preference for risk assets could weaken, creating a negative factor for semiconductor investment sentiment. Source: mk.co.kr.