BANGKOK (AP) — Asian shares faced declines on Thursday, with South Korea’s Kospi suffering a drop of more than 4%. This downturn followed falls for major tech companies like SK Hynix, amid a general market decrease. Brent crude oil steadied at approximately $79 per barrel, amidst ongoing uncertainties regarding the U.S. conflict with Iran and prospects of reopening the Strait of Hormuz.
Investors are keenly awaiting the U.S. jobs update set for Friday with the monthly employment report for July. Analysts suggest that investors might be positioning themselves for possible impacts from this report. Stephen Innes of SPI Asset Management remarked that the selloff in Asian chip stocks appears influenced by profit-taking and risk reduction in anticipation of Friday’s data.
U.S. stocks generally have been buoyed by strong corporate profits and anticipated growth. However, Asian markets are encountering periods of selling, especially in companies tied to the artificial intelligence boom. SK Hynix saw a 9.7% drop, while Samsung Electronics fell 6.1% amidst this AI-related downturn. The Kospi closed 4.5% lower at 6,306.40.
Japan’s Nikkei 225 decreased by 1.2% to 65,538.44, and Hong Kong’s Hang Seng saw a 1.8% decline to 25,463.51. The Shanghai Composite index remained relatively flat at 3,878.92. In contrast, Australia’s S&P/ASX 200 saw a modest rise of 0.5%.
U.S. President Donald Trump suggested that a resolution to reopen the Strait of Hormuz may be imminent. The five-month conflict has disrupted global oil supply, plagued the energy markets, and contributed to persistent inflation. During this period, Brent crude prices have varied significantly, previously reaching highs of $102 per barrel, impacting gasoline costs and shipping expenses.
U.S. benchmark crude oil witnessed a slight decline of 0.4% to $74.93 per barrel. In U.S. markets, the S&P 500 edged down 0.2% from a record high to close at 7,723.55, while the Dow Jones rose 0.5% to 54,349.12. The Nasdaq composite dropped by 0.8% to 26,363.44.
Big technology stocks also encountered losses, with Alphabet, Google’s parent company, falling 4%, and Microsoft seeing a 1.1% decrease. However, a positive market trajectory is evident as companies wrap up their earnings reports, amidst strong gains.
The Walt Disney Co. experienced a 3.6% rise after surpassing Wall Street’s profit forecasts, benefiting from a substantial $1 billion box office success of “Toy Story 5” alongside theme park revenue. Booking Holdings saw a 6.6% increase following reports of high travel demand enhancing profit and revenue in the latest quarter.
Conversely, Elon Musk’s SpaceX slid 13.6%, impacted by its first quarterly report as a public entity showing elevated spending on AI technology. Nevertheless, SpaceX’s exclusive use of Nvidia’s chips for AI sparked a 3.4% boost for the semiconductor manufacturer. Musk had earlier remarked about employing both Nvidia and AMD chips for SpaceX and Tesla.
Concerns over inflation loom over the market and Federal Reserve, which is maintaining its key rate while evaluating economic cost implications. On Thursday, currency fluctuations saw the dollar shifting slightly to 157.73 Japanese yen from 157.77 yen, and the euro declining marginally to $1.1549 from $1.1555.
Damian J. Troise of the Associated Press contributed additional insights to this report.
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