(RTTNews) – Asian stocks ended mostly lower on Wednesday, with tech shares coming under selling pressure amid concerns that the AI-fueled rally in chipmakers may be losing momentum.
Renewed U.S.-Iran tensions also weighed on sentiment after the U.S. carried out a fresh round of airstrikes on Iran, targeting more than 80 locations in response to Iranian attacks on three commercial vessels in the Strait of Hormuz.
The U.S. dollar held around its highest level in a week in Asian trade, Japanese government bond yields surged to multi-decade highs and Euro zone bond yields reached their highest levels in nearly a month as renewed Middle East tensions drove up crude oil prices, threatening inflation outlook and giving rise to Fed rate hike expectations.
Gold was firm above $4,100 an ounce ahead of the release of minutes from last month’s Federal Reserve meeting later in the day.
Brent crude futures surged toward $76 a barrel on heighted fears over Strait of Hormuz disruptions.
China’s Shanghai Composite index fell 0.49 percent to 3,970.88. Hong Kong’s Hang Seng index soared 2.99 percent to 24,199.46, led by technology stocks after a report from Reuters indicated Chinese startup DeepSeek is developing its own AI chip.
Alibaba Group Holding shares surged 12.2 percent, while Tencent and JD.com rallied around 3.8 percent each.
Japanese markets tumbled as investors remained cautious of AI-related stocks. The Nikkei average fell 2.11 percent to 66,819.05 while the broader Topix index dropped 1.37 percent to 4,006.43.
Tech stocks followed their U.S. peers lower, with Tokyo Electron falling over 3 percent and Taiyo Yuden plunging 8.5 percent.
Seoul stocks nosedived on the back of higher oil prices and escalating geopolitical tensions. Semiconductor stocks extended their sell-off as investors reassessed the outlook for artificial intelligence (AI) trade.
The Kospi index plummeted 5.35 percent to 7,246.79. Market bellwether Samsung Electronics slumped 6.3 percent, chip giant SK Hynix lost 5.7 percent and carmaker Hyundai Motor tumbled 3.6 percent.
Australian markets ended slightly lower to extend losses for a third consecutive session. The benchmark S&P/ASX 200 fell more than 1 percent to reach its lowest level in a week before recouping significant losses to settle 0.21 percent lower at 8,785.10.
The broader All Ordinaries index slipped 0.28 percent to 8,979.30, dragged down by losses in mining and gold stocks.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index fell 0.71 percent to 13,665.18 as the Reserve Bank of New Zealand raised its key interest rate for the first time in three years and signaled potential for more hikes to come.
U.S. stocks ended lower overnight after reports of projective attacks on several vessels near the Strait of Hormuz sent crude prices sharply higher.
The tech-heavy Nasdaq Composite closed 1.2 percent lower as shares of Micron and other chip semiconductor firms fell on concerns the AI-driven rally may be overstretched. The S&P 500 dropped half a percent and the Dow eased 0.3 percent.
