Asian stock markets saw a largely downward trend on Thursday, with South Korea’s Kospi experiencing a notable 6.6% decline. The drop was primarily driven by the Bank of Korea’s unexpected decision to raise interest rates, which put significant pressure on the markets. Technology stocks were particularly hard hit, with SK Hynix and Samsung Electronics suffering losses of 11.2% and 8.2%, respectively.
In Japan, the Nikkei 225 index decreased by 2.9%, largely due to declining performance in chip-related companies. Key players such as Kioxia, Tokyo Electron, Advantest, and SoftBank Group contributed to the downward movement. Meanwhile, Taiwan’s Taiex index dipped 0.3% as investors awaited earnings reports from chip giant TSMC. China’s Shanghai Composite also witnessed a 0.9% fall, while Australia’s S&P/ASX 200 ended the day slightly lower.
Contrasting the regional trend, Hong Kong’s Hang Seng Index managed to rise by 1.7%. This increase was fueled by gains in Alibaba’s shares, boosted by the approval of Apple Intelligence’s AI service in China, which utilizes Alibaba’s Qwen model. This positive performance helped offset some of the broader losses seen across other Asian markets.
While oil prices showed a slight ease, they remained high amid ongoing geopolitical tensions. Brent crude slipped by 0.4% to settle at $84.55 per barrel, and US crude saw a 0.2% decline, closing at $79.34 per barrel. Concerns continue to linger over possible disruptions to shipping routes through the strategic Strait of Hormuz, which is keeping the oil market on edge.
In contrast to the mixed performance in Asia, US stock markets closed in positive territory overnight. This uptick was supported by encouraging signs of easing inflation and robust corporate earnings, providing a boost to investor sentiment and helping offset some of the global market uncertainties.