Asian stock markets drop

KOSPI was among the worst performers for the day, declining 1.6% and dropping from record highs hit earlier in the week

Asian stocks dropped on Friday, with Japanese and South Korean markets drop from record highs as renewed strikes between Iran and the U.S. dampened hopes for an end to the war.

Markets took a weak lead-in from U.S. stock market, which fell from record highs overnight after the U.S. said it faced attacks on three warships in the Strait of Hormuz.

But overall losses were limited, with S&P 500 Futures up 0.2% in Asian trade as technology shares remained resilient on optimism over artificial intelligence.

KOSPI was among the worst performers for the day, declining 1.6% and dropping from record highs hit earlier in the week.

But the index was by far the best-performing Asian bourse this week, and was set to add more than 11%.

This was largely on strength in chipmaking stocks, with memory chip giants Samsung Electronics Co Ltd and SK Hynix Inc logging strong gains on growing optimism over the AI industry.

Samsung declined 3% on Friday, while SK Hynix slipped 1.5% after a strong week of record highs. Losses in SK Hynix were limited.

Broader Asian stocks retreated on Friday, dented by an escalation in Iran-U.S. military action in the Strait of Hormuz. The flare-up largely dented earlier hopes that a lasting peace deal between the two was close.

Oil prices also surged on Friday, further spooking markets with the inflationary spectre of the Iran war.

Nikkei 225 and TOPIX indexes slid more than 1% each. Strong Japanese wage data– which showed real wages increasing for a third straight month in March– also furthered bets that an interest rate hike by the Bank of Japan was close.

But the Nikkei was still set to rise nearly 4% this week, having returned from the Golden Week holiday with strong gains.

Shanghai Shenzhen CSI 300 and Shanghai Composite indexes shed 0.5% and 0.2%, respectively, but were up more than 1% this week. Hang Seng index slipped 1.2% but was up almost 2% this week on gains in tech.

ASX 200 shed 1.5% and was flat this week, after the Reserve Bank hiked interest rates by 25 basis points and warned of higher inflation that could stifle growth.