Asian Stocks Fall as Tech Rally Cools; KOSPI Hits Record High
Most Asian stocks slipped on Friday, weighed down by profit-taking in the technology sector, while South Korea’s KOSPI surged to a record high as markets reopened after a week-long break.
Regional sentiment followed overnight declines on Wall Street, where U.S. indexes fell from record levels as the tech rally paused.
Traders also awaited new economic data from the U.S., but a government shutdown delayed several key reports.
Still, S&P 500 futures rose 0.2% in Asian trade, supported by continued bets on a Federal Reserve interest rate cut in October.
Meanwhile, a ceasefire between Israel and Hamas helped improve overall market sentiment across risk assets.
Japan Stocks Slip on Hot Inflation Data
In Japan, the Nikkei 225 dropped 1%, while the TOPIX index slid 1.7%, retreating from recent record highs.
Losses in major tech names weighed on the market, with SoftBank Group Corp. (TYO:9984) tumbling 3.4% from its all-time peak.
Investor sentiment weakened after producer price index (PPI) data for September came in stronger than expected, raising fears that sticky inflation could prompt the Bank of Japan (BOJ) to pursue more rate hikes.
However, the BOJ may face political resistance, especially with fiscal dove Sanae Takaichi set to become Japan’s next prime minister.
Takaichi’s election as LDP leader had boosted markets earlier in the week, but a parliamentary session to confirm her as prime minister will not convene until mid-October.
China, Hong Kong Stocks Dip as Tech and Biotech Fall
Mainland Chinese markets also traded lower, with the Shanghai Shenzhen CSI 300 and Shanghai Composite down 0.5% and 0.2%, respectively.
The pullback came after a strong post-holiday rebound driven by data showing steady consumer spending during the Golden Week break.
In Hong Kong, the Hang Seng Index slipped 1%, dragged down by tech stocks that mirrored U.S. losses.
Semiconductor Manufacturing International Corp (HK:0981) plunged 5.2%, making it the worst performer on the index.
Biotech stocks also declined after U.S. lawmakers advanced a defense bill restricting federal funding to certain Chinese biotech firms and limiting American investments in sensitive sectors.
WuXi AppTec Co Ltd (HK:2359) and WuXi Biologics (HK:2269) fell between 2% and 3% in response.
Elsewhere, Singapore’s Straits Times Index edged down 0.2%, and Australia’s ASX 200 traded flat.
Futures for India’s Nifty 50 rose 0.2% ahead of major tech earnings expected in the coming weeks.
South Korea’s KOSPI Surges to Record High
South Korean markets outperformed the region, with the KOSPI index soaring 1.5% to a record 3,617.86 points.
The rally came as investors returned from a week-long holiday, sparking catch-up buying led by chipmakers.
Tech giants SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930) drove gains after signing long-term supply deals with OpenAI for memory processors — a move expected to generate strong future revenues.
SK Hynix jumped 6.6% to a record high, while Samsung rose 5.1%, nearing a six-year peak.
