Asian stock markets saw varied performances on Thursday, with South Korea’s Kospi experiencing a significant downturn, dropping 6.6%. This decline was primarily driven by a surprise interest rate hike from the Bank of Korea and substantial losses in the technology sector. Notably, SK Hynix’s shares plummeted by 11.2%, while Samsung Electronics saw an 8.2% decline.
Meanwhile, Japan’s Nikkei 225 index fell by 2.9%, influenced by a slump in chip-related stocks. Companies such as Kioxia, Tokyo Electron, Advantest, and SoftBank Group were among those facing declines. Taiwan’s Taiex Index slipped 0.3% ahead of a crucial earnings report from chipmaker TSMC, and China’s Shanghai Composite decreased by 0.9%. Additionally, Australia’s S&P/ASX 200 closed with a slight loss.
Contrary to the broader regional trend, Hong Kong’s Hang Seng Index gained 1.7%. This rise was bolstered by Alibaba’s performance following the approval of an AI service developed by Apple Intelligence in China, which utilizes Alibaba’s Qwen model.
In the energy markets, oil prices dipped slightly but remained high due to ongoing geopolitical tensions. Brent crude decreased by 0.4%, priced at $84.55 a barrel, while US crude saw a 0.2% drop, settling at $79.34 per barrel. Persistent concerns regarding potential disruptions to shipping through the Strait of Hormuz continued to exert upward pressure on oil prices.
On the other hand, US stock markets closed higher the previous night, driven by positive factors such as the easing of inflation data and robust corporate earnings reports.