Asian equity markets fell on Thursday, mirroring a technology-led selloff on Wall Street overnight and reflecting persistent doubts about the durability of the AI-fueled rally. South Korea’s KOSPI Composite—widely regarded as a key barometer for the AI sector—slumped nearly 5%, while Japan’s Nikkei 225 declined more than 1%. Benchmark indexes in China and Australia also traded lower, though Hong Kong stocks advanced as trading resumed after a holiday.
Regional equities remained under pressure even after Federal Reserve Chair Kevin Warsh noted that inflation expectations had eased over the past month, suggesting there was no immediate need to raise interest rates. At the same time, increased oil shipments through the Strait of Hormuz and indications of progress in indirect US–Iran negotiations helped alleviate some of the strain on Asia’s oil-importing economies.
