Asian stocks today: Asian markets traded lower after renewed selling in semiconductor stocks reignited concerns about the sustainability of the artificial intelligence (AI)-driven rally.
South Korea’s Kospi dropped more than 6%. Meanwhile, the MSCI Asia Pacific Index slipped 1.7%.
Japan’s Nikkei 225 fell 2.4%, while the broader Topix index slipped 0.9%.
Australia’s benchmark S&P/ASX 200 was little changed, opening on a flat note. Futures for Hong Kong’s Hang Seng index were last at 24,829, higher than its Wednesday close of 24,681.1.
What’s driving Asian markets today?
South Korea’s central bank on Thursday raised its benchmark policy rate for the first time since January 2023, as inflationary pressures continued to build in the country.
The rate hike follows a steady rise in consumer prices, with headline inflation climbing to 3.2% in June, its highest level since 2023.
Last month, the Bank of Korea (BOK) said that hefty performance bonuses paid by several major IT companies could lead to broader wage growth across the economy, potentially adding further upward pressure on inflation.
Crude oil prices continued to climb after the United States launched fresh strikes on Iran, fuelling fears that escalating tensions in West Asia could further disrupt global energy supplies. Brent crude rose for a fourth consecutive session, trading above $85 a barrel.
Government bonds in Australia and New Zealand opened higher as investors sought safer assets.
Although recent inflation data has reduced expectations of near-term interest rate hikes by the US Federal Reserve, the worsening conflict in the Persian Gulf has revived concerns over potential disruptions to energy supplies.
Meanwhile, investors are evaluating whether robust corporate earnings can keep the artificial intelligence-driven market rally intact after sharp fluctuations in semiconductor stocks highlighted persistent concerns over the sector’s elevated valuations.
US stock market today
US stock futures were largely flat on Wednesday night after Wall Street rallied on the back of softer-than-expected inflation data, easing Treasury yields, and upbeat corporate earnings.
Dow Jones Industrial Average futures edged up 15 points, or 0.03%. S&P 500 futures gained 0.05%, while Nasdaq 100 futures advanced 0.11%.
In the regular trading session, the Dow Jones Industrial Average rose 150.91 points, or 0.3%, to close at 52,659.18. The S&P 500 climbed 0.4% to finish at 7,572.43, while the tech-heavy Nasdaq Composite added 0.6% to settle at 26,269.23.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
