Asian stock markets saw a general downturn on Thursday, with a notable 6.6% plunge in South Korea’s Kospi index leading the declines. This drop came amid unexpected news of an interest rate hike from the Bank of Korea, which added pressure on the financial markets. Technology stocks were particularly hard hit, with SK Hynix plummeting 11.2% and Samsung Electronics decreasing by 8.2%, contributing significantly to the overall market retreat.
In Japan, the Nikkei 225 index fell by 2.9%, primarily driven by losses in companies linked to the semiconductor industry. Notable declines were observed in shares of Kioxia, Tokyo Electron, Advantest, and SoftBank Group, reflecting broader sector challenges. Meanwhile, Taiwan’s Taiex index experienced a modest 0.3% decrease, as investors awaited the earnings report from major chipmaker TSMC. Across the continent, the Shanghai Composite in China dipped 0.9%, and Australia’s S&P/ASX 200 also ended the day in negative territory, albeit slightly lower.
However, not all markets followed the bearish trend. Hong Kong’s Hang Seng Index rose by 1.7%, buoyed by a strong performance from Alibaba. The surge came after China approved the use of Apple Intelligence’s AI service, which will utilize Alibaba’s Qwen model, a development that investors viewed positively.
On the commodities front, oil prices saw a slight decrease, although they remained at elevated levels due to ongoing geopolitical tensions. Brent crude oil prices dropped by 0.4% to $84.55 a barrel, while US crude saw a 0.2% decline to $79.34 per barrel. Concerns about potential disruptions to shipping routes through the Strait of Hormuz continued to underpin oil market dynamics.
In contrast to the Asian markets, US stock markets closed higher the previous night. This positive outcome was supported by data indicating easing inflation, along with robust corporate earnings reports, which bolstered investor sentiment and helped lift market indices.