Asian stock markets fell on Thursday, retreating from record highs hit earlier in the week, as sharp volatility in global technology shares amid AI disruption worries weighed on investor sentiment.
The pullback followed a sharp sell-off in U.S. technology stocks overnight, where the Nasdaq fell more than broader benchmarks.
U.S. stock index futures traded largely flat in early Asian hours on Thursday.
Get premium Asian stock market analysis with real time updates on InvestingPro Tech stocks lead losses amid AI disruption fears The downturn comes after a turbulent week for technology and semiconductor stocks, driven by growing concerns that rapid advances in artificial intelligence could disrupt existing business models and compress margins, prompting investors to take profits after a strong rally.
South Korea’s benchmark index KOSPI dropped 3.7% after surging to record highs over the previous two sessions. Shares of Samsung Electronics (KS:005930) and SK Hynix (KS:000660) fell over 5% each as investors locked in profits following the recent rally.
China's blue chip Shanghai Shenzhen CSI 300 index and the Shanghai Composite index fell nearly 1% each.
Hong Kong's Hang Seng slipped 1.2%, with the Hang Seng TECH sub-index losing 1.5%.
Japan stocks lower, earnings boost caps losses In Japan, the Nikkei 225 fell 1%, easing from record highs reached earlier this week, as technology stocks tracked overnight losses on Wall Street.
Nikkei's losses was capped by strong gains in select names, with Panasonic (TYO:6752) surging after reporting robust earnings and upbeat guidance, while Renesas Electronics (TYO:6723) jumped after announcing the sale of its timing business to U.S.-based SiTime in a deal valued at about $3 billion.
The broader TOPIX index traded largely flat, reflecting relative resilience outside the technology sector.
Singapore’s Straits Times Index edged 0.4% lower after closing at a record high in the previous session.
Australia's S&P/ASX 200 index also fell 0.4%, tracking regional losses, as investors digested trade data released earlier in the day.
Australia’s trade surplus widened less than expected in December, reflecting subdued export growth alongside softer imports, reinforcing concerns that global demand remains uneven.
Futures tied to India's Nifty 50 inched down 0.3%.
