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Asian stocks fall as semiconductor sell-off hits tech and sentiment

Japan’s Nikkei 225 slid 2.6%, South Korea’s KOSPI fell 6.4%, while Hong Kong’s Hang Seng rose 1.9% after softer-than-expected US inflation data.

Reported · Written up by our desk · Asia

Asian markets traded mixed on Thursday, with declines driven by a renewed sell-off in semiconductor shares that weighed on tech sentiment. FXStreet said investor skepticism about whether the artificial intelligence rally can sustain current valuations continued to pressure the region’s stock indexes.

Japan’s Nikkei 225 fell 2.6% to about 67,000, South Korea’s KOSPI dropped 6.4% to around 6,820, and China’s SSE Composite fell 0.8% to about 3,920. Hong Kong’s Hang Seng, however, rose 1.9% to roughly 25,150 as improving sentiment supported broad buying across financial, consumer, and technology sectors.

FXStreet linked the stock caution to escalating military actions in the Middle East that have pushed crude oil prices higher, raising concerns about a potential second wave of inflation. That backdrop adds uncertainty to the path of central bank interest rates.

In South Korea, the market slide intensified as domestic heavyweights in semiconductors were hit by the wider global chip sell-off. Separately, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75%, starting a new tightening cycle aimed at curbing domestic inflation, according to FXStreet.

Latest closeWTI crude $80.18 ▲1.1%|Nikkei 225 67,743.50 ▲0.7%|Hang Seng 24,340.73 ▲0.5%

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