Asian stock markets saw a general downturn on Thursday, with South Korea’s Kospi index experiencing a significant 6.6% fall. The decline was primarily driven by a surprise interest rate increase by the Bank of Korea, which sent shockwaves through technology stocks. Notable losses included SK Hynix, which plummeted 11.2%, and Samsung Electronics, which dropped 8.2%.
In Japan, the Nikkei 225 index decreased by 2.9%, dragged down by losses in chip-related companies such as Kioxia, Tokyo Electron, Advantest, and the SoftBank Group. Meanwhile, Taiwan’s Taiex index dipped 0.3% as investors anticipated the earnings report from chipmaker TSMC. China’s Shanghai Composite also recorded a fall, declining 0.9%, while Australia’s S&P/ASX 200 ended the day slightly lower.
Contrasting with the overall regional trend, Hong Kong’s Hang Seng Index rose by 1.7%. This positive performance was bolstered by gains in Alibaba shares, following the approval of Apple Intelligence’s AI service in China, which utilizes Alibaba’s Qwen model.
Oil prices saw a slight decrease despite ongoing geopolitical tensions. Brent crude oil prices fell by 0.4% to $84.55 per barrel, while US crude prices dipped by 0.2% to $79.34 per barrel. Concerns over potential disruptions to shipping through the Strait of Hormuz continued to exert upward pressure on oil prices, keeping them relatively high.
In contrast to the Asian markets, US stock markets closed on a positive note the previous night, buoyed by easing inflation data and robust corporate earnings reports. This divergence highlights the complex dynamics currently influencing global financial markets.