Asian markets displayed mixed performance as oil prices climbed following escalating tensions between the U.S. and Iran. South Korea’s benchmark Kospi index fell 1.2% to 5,593.56, extending losses that began earlier in the week with declines of 10.8% on Tuesday and nearly 6% on Wednesday. The index has retreated more than 38% from its June peak, though it remains up approximately 30% year-to-date.
The Kospi’s recent weakness reflects growing investor skepticism about artificial intelligence-related investments, a sector that had previously driven regional market gains. Major South Korean technology firms reported strong quarterly earnings, yet share prices declined. Samsung Electronics dropped 0.7% despite announcing record operating profit, while chipmaker SK Hynix lost 5.6% after reporting a sixfold increase in quarterly operating profit that fell short of analyst expectations.
Other Asian markets showed limited movement. Tokyo’s Nikkei 225 gained 0.7% to 61,867.43, with mixed performance among AI-related holdings. Taiwan’s Taiex closed 0.3% lower, while Hong Kong’s Hang Seng edged up 0.2%. Shanghai’s composite index declined 0.7%, and Australia’s S&P/ASX 200 slipped 0.8%. According to market analysts, concerns about the sustainability of tech industry AI infrastructure spending and competition from Chinese AI developers have contributed to recent volatility across the region.
Oil markets strengthened amid ongoing geopolitical tensions. Brent crude rose 0.6% to $88.60 per barrel following U.S. military actions against Iran and Iranian retaliatory measures. Maritime traffic restrictions in the Strait of Hormuz added supply pressure to global oil markets. U.S. crude traded 0.3% higher at $84.70 per barrel.
U.S. stock markets closed lower, with the S&P 500 dropping 1.5%, the Dow Jones Industrial Average falling 2.2%, and the Nasdaq composite declining 1.7%. Technology sector weakness drove broader declines, with major chipmakers including Nvidia, AMD, and Broadcom all posting significant losses. The Federal Reserve maintained interest rates unchanged, contributing to market uncertainty about future policy direction.
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