Most Asian stocks fell on Thursday as technology shares resumed their decline on persistent concerns over stretched artificial intelligence valuations, while anticipation of a hawkish Bank of Japan also weighed.
Regional markets tracked an overnight slide on Wall Street, which was battered by outsized losses in tech. But positive earnings from memory chips maker Micron, released after the close, offered some support.
S&P 500 Futures rose 0.1% by 20:59 ET (01:59 GMT), aided by an over 7% jump in Micron Technology (NASDAQ:MU). But bigger gains were limited by caution before an upcoming consumer price index inflation print, due later in the day.
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Japanese markets retreat with hawkish BOJ in focus Japan’s Nikkei 225 fell 1% on Thursday, while the TOPIX shed 0.3%.
Sentiment towards local markets was dented by increasing conviction that the Bank of Japan will hike interest rates at the conclusion of a two-day meeting on Friday.
Bets on a hike come amid persistent weakness in the yen and increasingly sticky domestic inflation– two trends that the central bank has signaled it will aim to quell. BOJ officials also recently signaled that they will discuss raising interest rates during their upcoming meeting.
Before the BOJ’s decision on Friday, Japanese CPI inflation data for November is also on tap.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Asia tech resumes slide as AI sentiment dithers Broader Asian tech shares largely retreated, with tech remaining on the backfoot amid continued questions over steep AI-fueled valuations.
South Korea’s KOSPI was the worst performer in the region, down 1.3%, while Hong Kong’s Hang Seng shed about 0.3%.
Chipmaking giant TSMC (TW:2330) fell 0.4% in Taipei trade, while losses in South Korean memory stock majors SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930) were somewhat limited by positive signals from Micron.
But markets at large remained largely cautious towards tech, amid persistent doubts over an AI-fueled bump-up in valuations over the past two years. Frothy valuations also spurred a heavy dose of profit-taking in tech.
Caution before more signals on U.S. interest rates also factored into tech aversion. Growing bets that the Federal Reserve will leave interest rates unchanged in January had weighed on tech shares in recent weeks.
Among other Asian markets, China’s Shanghai Shenzhen CSI 300 index fell 0.7%, while the Shanghai Composite was flat. Chinese markets whipsawed in recent sessions amid speculation over Beijing’s plans for more stimulus measures, especially following a swathe of weak economic readings for November.
Australia’s ASX 200 fell 0.2%, while Singapore’s Straits Times index was flat. Futures for India’s Nifty 50 index rose marginally, after concerns over slowing economic growth and trade-related headwinds weighed on Indian stocks in recent sessions.
