Nikkei 225 dropped 1%, the broader TOPIX index slipped 1.7%, Shanghai Shenzhen CSI 300 and Shanghai Composite indexes slid 0.5% and 0.2%, respectively, the Hang Seng index dropped 1%, while Straits Times index was down 0.2%

Most Asian stocks dropped on Friday, pressured by some profit-taking in the technology sector, while South Korean markets surged to record highs as trade resumed after a week-long break.

Nikkei 225 dropped 1%, while the broader TOPIX index slipped 1.7%, with both indexes declining from recent record highs. Losses in tech stocks pressured the Nikkei, with tech conglomerate SoftBank Group Corp. slipping 3.4% from record highs.

Markets were spooked by a stronger-than-expected producer price index inflation figure for September, given that sticky inflation is likely to elicit more rate hikes by the Bank of Japan (BOJ).

But the BOJ is expected to face growing resistance from the Japanese government over its rate hike plans, especially with Sanae Takaichi set to become prime minister.

Japanese markets rallied this week on Takaichi’s election as the leader of the ruling Liberal Democratic Party, with a parliamentary session on her prime ministership set to convene in mid-October.

Shanghai Shenzhen CSI 300 and Shanghai Composite indexes slid 0.5% and 0.2%, respectively, retreating from a sharp rise in the prior session. Mainland markets resumed trade on strong footing after the golden week holiday, with government data pointing to steady consumer spending during the break.

Hong Kong stocks lagged, with the Hang Seng index dropping 1%. Tech shares were the biggest weight on the index.

Semiconductor Manufacturing International Corp, China’s biggest chipmaker, dipped 5.2% and was the worst performer on the Hang Seng.

Broader Asian markets mostly trended lower, with Straits Times index down 0.2%, while ASX 200 moved in a flat-to-low range.

South Korean markets were an exception, with the KOSPI rallying nearly 1.5% to a record high of 3,617.86 points. Markets rose largely in catch-up trade after a week-long holiday, with tech shares leading the advance.