In a day of mixed performances across Asian stock markets, South Korea’s Kospi faced a significant setback, tumbling by 6.6% on Thursday. This downturn was primarily driven by a surprise interest rate hike from the Bank of Korea and substantial losses in the technology sector. Notable declines included SK Hynix, which plummeted 11.2%, and Samsung Electronics, which dropped 8.2%.
Japan’s Nikkei 225 also experienced a downturn, losing 2.9% as chip-related companies saw declines. Among those affected were Kioxia, Tokyo Electron, Advantest, and SoftBank Group, which all contributed to the overall negative sentiment in the market. Meanwhile, Taiwan’s Taiex index slipped by 0.3% as investors awaited the earnings report from chipmaker TSMC. China’s Shanghai Composite was not spared either, falling by 0.9%, while Australia’s S&P/ASX 200 closed slightly in the red.
In contrast to the broader regional trend, Hong Kong’s Hang Seng Index stood out by rising 1.7%. This upward movement was largely attributed to gains in Alibaba, following the approval of Apple Intelligence’s AI service in China, which utilizes Alibaba’s Qwen model. This development provided a boost to the market, highlighting the varied performances across the region.
On the commodities front, oil prices saw a slight decline, although they remained at elevated levels due to ongoing geopolitical tensions. Brent crude decreased by 0.4% to $84.55 per barrel, while U.S. crude saw a modest decline of 0.2%, settling at $79.34 per barrel. Concerns lingered over potential disruptions to shipping through the strategic Strait of Hormuz, which continued to underpin oil prices.
Across the Pacific, U.S. stock markets ended the previous day on a positive note, buoyed by easing inflation data and robust corporate earnings. This contrasted with the more mixed outcomes observed in the Asian markets, highlighting the divergent economic and market conditions between regions.