Asian Markets Drop as U.S. Treasury Yields Pressure Tech Stocks
Asian stocks slipped on Thursday, weighed down by rising U.S. Treasury yields and weak regional economic data. Tech-heavy indexes in South Korea and Hong Kong were among the worst performers, tracking Wall Street’s overnight decline as investors reacted to higher yields and risk aversion.
U.S. Tech Losses Hit Asian Markets
South Korea’s KOSPI dipped 0.2%, and Hong Kong’s Hang Seng index fell 0.7%, both hit hard by tech sector losses. Rising U.S. Treasury yields pushed markets to expect slower interest rate cuts from the Federal Reserve, further dampening investor sentiment.
South Korea's economic outlook worsened as its third-quarter GDP growth missed expectations, while Japan's economy showed signs of contraction in both manufacturing and services sectors. The Nikkei 225 index gained slightly, but the TOPIX fell 0.2% following weaker-than-expected Purchasing Managers' Index (PMI) data.
Bright Spots in Tech Amid Broader Declines
Despite broader market losses, South Korea’s SK Hynix Inc. rose 1% after reporting record earnings driven by strong demand in artificial intelligence (AI) chips. Horizon Robotics saw an impressive debut on the Hong Kong stock market, with shares surging 28% following its $696 million IPO—the largest in Hong Kong this year.
China and India Show Mixed Market Trends
Chinese stocks also dipped, with the Shanghai Composite and CSI 300 losing 0.4% and 0.6% after a four-day rally on optimism surrounding government stimulus measures. Meanwhile, Australia’s ASX 200 rose 0.3%, helped by growing service sector activity, while Indian markets are set for a positive opening after three days of declines, buoyed by key earnings reports.
