Asian markets were broadly weaker on Thursday as investors took profits in technology stocks despite a positive Wall Street lead, while oil above US$110 a barrel added to inflation concerns across the region.
South Korea and Hong Kong led the declines, while Japan reversed an earlier gain and mainland Chinese equities also traded lower, with Australia finishing in the red and Indian markets extending their losses after the open.
ASX closes lower
The S&P/ASX 200 finished 39 points, or 0.4%, lower at 8,792, after opening at its session high of 8,831 and falling as low as 8,764.
The broader All Ordinaries fell 0.5% to 8,912, with banks, miners and energy stocks contributing to the weaker session.
The Australian benchmark had closed at 8,831 on Wednesday and remains well below its 52-week high of 9,297.
South Korean chips reverse course
South Korea’s Kospi fell around 2.5%, giving back much of Wednesday’s 3.3% rebound as investors returned to selling major semiconductor stocks.
Samsung Electronics fell around 4%, while SK Hynix lost close to 5%, with concerns about the cost and financing of artificial intelligence infrastructure continuing to weigh on the sector.
The reversal followed sharp gains in both companies a day earlier, when easing AI spending concerns briefly encouraged investors back into chip stocks.
Nikkei falls as technology stocks retreat
Japan’s Nikkei 225 fell around 1.5% in afternoon trading after initially opening higher, with heavy selling in technology shares overwhelming the positive Wall Street lead.
SoftBank Group dropped more than 5% and Tokyo Electron fell almost 6% as investors reduced exposure to companies closely linked to the AI investment cycle.
The yen was little changed around ¥158 to the US dollar.
Hong Kong and China weaken
Hong Kong’s Hang Seng fell more than 2%, trading around the 23,100 to 23,200 level as technology and growth stocks came under pressure.
Mainland Chinese markets were also weaker, with the Shanghai Composite down around 1% near 3,690.
The falls left Chinese and Hong Kong equities extending recent weakness despite the overnight advance on Wall Street.
Taiwan holds up better
Taiwan’s Taiex was roughly flat around 46,900 during afternoon trade, outperforming most of the region despite renewed pressure on Asian semiconductor stocks.
The Taiwanese benchmark remains particularly sensitive to swings in global AI sentiment given the heavy weighting of semiconductor and technology companies.
India extends losses
Indian shares opened sharply lower as rising oil prices added to concerns about inflation and the outlook for interest rates.
The Sensex was down around 0.6% near 73,300 in morning trading, while the Nifty 50 fell around 0.7% to about 22,650.
Power, metals, autos and other economically sensitive sectors were among the weaker parts of the market, while elevated crude prices remain a particular concern for India given its dependence on imported energy.
Wall Street rally fails to lift Asia
The weakness came despite gains on Wall Street overnight, where technology stocks responded positively to a series of corporate earnings reports.
The Nasdaq Composite gained about 1.1%, the S&P 500 rose 0.6% and the Dow Jones Industrial Average added around 0.7%.
The improvement was not enough to restore confidence across Asian technology markets, where questions remain over the returns companies can generate from the rapid expansion of AI infrastructure.
Oil above US$110
Brent crude climbed above US$110 a barrel, while West Texas Intermediate traded around US$98, as continued Middle East tensions supported energy prices.
Gold was trading around US$4,120 an ounce, while the Australian dollar remained near US$0.70.
