Asia-Pacific markets traded lower on Thursday, with regional benchmarks weighed down by a sharp sell-off in technology stocks following weakness in United States semiconductor shares overnight.
By 12:20 pm AEST (2:20 am GMT), Australia's S&P/ASX 200 was down 0.3%, Japan's Nikkei 225 had fallen 3.1%, and South Korea's KOSPI 200 had slumped 7.0%.
Asian semiconductor stocks came under heavy selling pressure as losses in U.S. chipmakers spilled into the region, while SK Hynix continued to experience heightened volatility following its U.S. listing last week.
Shares of SK Hynix dropped 11.1% in Seoul, reversing the previous session's 8.0% rally. The stock had recorded its steepest-ever one-day decline on Monday as investors took profits amid growing concerns over the sustainability of AI-related spending.
Domestic rival Samsung Electronics tumbled 9.3%, while Seoul Semiconductor lost 6.6%.
Among economic developments, South Korea's central bank raised its benchmark interest rate by 25 basis points to 2.75%, marking its first rate increase since January 2023.
The decision was in line with market expectations as policymakers responded to gradually rising inflation.
Overnight in the United States, major benchmark indices closed higher. The Dow Jones Industrial Average gained 0.3%, the S&P 500 advanced 0.4%, and the Nasdaq Composite climbed 0.6%.
In commodities, Brent crude rose 0.3% to settle at US$84.95 a barrel, while spot gold added 0.2% to finish at US$4,059.82 an ounce.
In China, the Shanghai Composite Index fell 0.3% to 3,955.6, while the CSI 300 declined 0.2% to 4,786.8.
Elsewhere in the region, Hong Kong's Hang Seng Index rose 1.4% to 24,681.1, while India's BSE Sensex edged 0.2% higher to 77,185.4.
European markets closed mixed on Wednesday. The UK's FTSE 100 slipped 0.1% to 10,515.9, Germany's DAX fell 0.6% to 24,999.5, while France's CAC 40 added 0.2% to 8,382.4.
