Asian shares declined on Thursday, following a retreat in technology stocks on Wall Street, as concerns over high valuations in the tech sector continue to weigh on global markets. The S&P 500 fell 0.5% on Wednesday, marking its fifth modest loss in six days, with tech stocks like Advanced Micro Devices and Uber Technologies dragging the index lower.
The biggest declines were seen in South Korea, where the Kospi index dropped 3.2%, and in Hong Kong, where the Hang Seng lost 1.2%. Chinese markets also retreated, with the Shanghai Composite falling 0.8%. Japan’s Nikkei 225 saw a smaller dip, shedding 0.7%.
Despite these losses, U.S. futures showed a slight rebound, and oil prices experienced further declines, with U.S. crude falling by $1.19 to $63.95 per barrel and Brent crude dropping by $1.24 to $68.22 per barrel. These moves come after a period of volatility in commodity markets, with gold and silver prices also fluctuating.
The retreat in tech stocks has raised concerns, even when companies report better-than-expected profits. Advanced Micro Devices, despite a stronger profit for the quarter, saw its stock drop by 17.3%, while Uber Technologies fell 5.1% after disappointing results and a below-expectation profit forecast. On the other hand, companies like Super Micro Computer and Eli Lilly showed gains, with the former rising 13.8% after a strong quarter and the latter seeing a 10.3% jump.
This global market slowdown reflects broader economic concerns, with inflation and interest rates continuing to influence market sentiment. The outlook for tech stocks remains uncertain, as questions about their future growth persist, especially as competition from emerging technologies like artificial intelligence intensifies.
