Precise Investors Editorial Team
Tech-heavy Asian bourses led losses on Thursday, with KOSPI, Nikkei 225, and Hang Seng all declining more than 1%
Asian stocks dropped on Thursday, pressured by an extended rout in technology shares, while increased strikes between Iran and U.S. also dampened sentiment.
Tech-heavy Asian bourses led losses on Thursday, with KOSPI, Nikkei 225, and Hang Seng all declining more than 1%.
The KOSPI had initially plunged as much as 4%, but recouped some losses on a recovery in heavyweight chipmaker SK Hynix Inc, following a report that the company planned to triple its wafer capacity.
Chipmaking stocks were the biggest weight on tech this week, as investors locked in gains after an artificial intelligence-driven rally in the sector in May.
The AI rally was seen cooling in June amid persistent doubts over long-term returns from the industry.
Oil prices surged after the latest Middle East hostilities, further pressuring markets with fears of higher inflation. Concerns over higher inflation and interest rates remained in play.
ASX 200 dropped 0.5%, while Shanghai Shenzhen CSI 300 and Shanghai Composite indexes shed 1.1% and 0.8%.
Straits Times index slid 0.4%, while futures for Nifty 50 index slipped 0.3%.
A Wall Street Journal report on Wednesday evening showed AI major OpenAI considering deep price cuts amid growing competition from rival Anthropic. The price cuts stand to further undermine revenue at a company that is already deep in losses.
Beyond tech, broader Asian markets also pulled back after Iran and U.S. ramped up attacks on each other on Wednesday.
Elsewhere, U.S. stock market was battered by persistent losses in tech, while a strong consumer inflation print for May also weighed. S&P 500 Futures steadied in Asian trade, recouping some initial losses.
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