Asian stocks drop on tech retreat

Asian technology stocks, which had soared in recent weeks on expectations of strong AI-related demand, dropped from recent highs

Most Asian stock markets took a breather on Thursday as technology shares retreated after recent gains.

Asian technology stocks, which had soared in recent weeks on expectations of strong AI-related demand, dropped from recent highs.

KOSPI shed 0.3% after climbing to new record highs earlier in the session.

Heavyweight chipmakers Samsung Electronics and SK Hynix posted strong earnings and outlooks on Thursday, sending their shares higher in early trade, but they pulled back as investors locked in gains amid broader market weakness.

Nikkei 225 index edged 0.2% lower, while the broader TOPIX slipped 0.3%.

Hang Seng index ticked down 0.2% after soaring more than 2.5% in the previous session.

In mainland China, the blue-chip Shanghai Shenzhen CSI 300, and the Shanghai Composite index were both muted.

S&P/ASX 200 slid 0.6%, while Straits Times Index edged down 0.1%.

In other markets, U.S. stocks closed largely muted overnight, with the S&P 500 and Nasdaq posting marginal moves after earnings from some of the world’s largest technology firms.

Stock futures edged lower during Asian hours, signalling a softer open later in the day.

Meta Platforms’ shares climbed in post-market trading after the company delivered an upbeat revenue outlook, reinforcing enthusiasm around AI-driven advertising tools. Tesla also beat expectations, offering some support to growth stocks.

In contrast, Microsoft’s shares slid after its results highlighted rising costs linked to heavy AI investment, tempering broader sentiment toward the sector.

The U.S. central bank’s policy decision remained a key focus for investors. The central bank on Wednesday held its benchmark interest rate steady, pausing after a series of cuts last year.

Central bank Chair Jerome Powell said policymakers needed greater confidence that inflation was moving sustainably toward the 2% target before easing policy further, while noting that economic growth remained resilient.