Asian stock markets mostly faced downturns on Thursday, significantly influenced by a steep 6.6% decline in South Korea’s Kospi index. This drop came amid a surprise interest rate hike by the Bank of Korea, which put considerable pressure on the markets. Technology stocks were particularly hard hit, with SK Hynix and Samsung Electronics experiencing substantial losses of 11.2% and 8.2%, respectively.
In Japan, the Nikkei 225 index fell by 2.9%, largely due to declines among chip-related companies. Key players such as Kioxia, Tokyo Electron, Advantest, and SoftBank Group contributed to the downward trend. Similarly, Taiwan’s Taiex index saw a slight decrease of 0.3% as investors awaited the earnings report from prominent chipmaker TSMC. China’s Shanghai Composite index also dipped, slipping 0.9% during the day’s trading session.
In contrast to the broader regional declines, Hong Kong’s Hang Seng Index broke the trend, showing a rise of 1.7%. This increase was bolstered by gains in Alibaba, following the approval of its AI service, Apple Intelligence, in China. The AI service operates using Alibaba’s Qwen model, which likely influenced investor confidence and spurred the index’s upward movement.
Oil prices experienced a slight decline, although they remained at elevated levels due to ongoing geopolitical tensions. Brent crude saw a reduction of 0.4%, bringing it to $84.55 per barrel, while US crude fell by 0.2% to $79.34 per barrel. Despite these decreases, concerns about potential disruptions to shipping routes through the Strait of Hormuz continued to exert upward pressure on oil prices.
Meanwhile, US stock markets closed on a positive note the previous night, aided by easing inflation data and robust corporate earnings. This positive performance in the US offered a contrast to the mixed results seen in Asian markets, reflecting varying economic conditions and investor sentiments across different regions.