Asian stocks drop, technology shares reverse gains

KOSPI logged sharp swings on Friday, reversing course and trading down 0.6%, while Nikkei 225 index also dropped from a record high hit earlier in the session, but traded up 0.2%

Asian stocks dropped on Friday amid some doubts over upcoming peace talks between Iran and U.S., while technology and chipmaking shares reversed early gains to trade lower.

Trading volumes were muted on account of holidays in China and Hong Kong.

KOSPI logged sharp swings on Friday, initially hitting a record high of 9,385.59 points before reversing course and trading down 0.6%.

The index was hit chiefly by a reversal in major chipmaking stocks, which faced some profit-taking after a strong run this week.

Samsung Electronics Co Ltd dropped nearly 2%, while SK Hynix Inc traded up 2% but pulled back from a record high hit earlier in the session.

Hyundai Motor declined nearly 1% after media reported the company planned to buy a remaining 9.65% stake in Boston Dynamics from SoftBank Group Corp.

Nikkei 225 index also dropped from a record high hit earlier in the session, but traded up 0.2%. The TOPIX index shed 0.9%.

Japanese consumer price index inflation remained muted in May, data showed on Friday, with core inflation also remaining below the Bank of Japan’s 2% annual target.

CPI inflation remained at four-year lows amid continued subsidies from the Japanese government to temper the impact of high fuel and gas costs.

The CPI print came after the BOJ hiked interest rates earlier this week and warned of more hikes in the face of sticky inflation. While CPI has remained quashed by government measures, producer price index inflation increased sharply in recent months– a trend that is likely to spill over into consumer prices.

Elsewhere, a strong overnight session on U.S. stock market provided some support, especially to Asian chipmaking stocks following a rally in Intel.

But U.S. stock index futures shed in Asian trade after Iranian media reports said Tehran was seeking more signs of implementation of a recently signed memorandum of understanding with U.S., before proceeding with more peace talks.