Story
Asian Stocks Decline Amid Geopolitical Tensions; Japan Chip Rally Limits Losses
Summary
Most Asian markets fell on Thursday amid rising oil prices and a continued slump in Samsung shares, dampening investor sentiment. A strong performance by Japanese semiconductor stocks, however, helped to offset some of the broader regional losses.
Most Asian stock markets declined on Thursday as renewed U.S.-Iran military actions pushed oil prices higher, reducing risk appetite. The negative sentiment was compounded by the continued fallout from Samsung Electronics' recent earnings report, which weighed heavily on South Korean equities.
South Korea's KOSPI index fell nearly 1.8%, extending its recent losses into bear-market territory. Samsung Electronics dropped another 2.5% after a sharp fall in the previous session. In contrast, chipmaker SK Hynix rebounded 3.5% following reports of strong demand for its planned U.S. listing, though this was not enough to lift the wider market.
Japan was the region's standout performer, with the Nikkei 225 climbing approximately 1.5% and the TOPIX index also gaining. The rally was led by a rebound in semiconductor-related companies, including Murata Manufacturing and TDK Corp, which saw renewed buying interest after a recent sell-off.
AdElsewhere in the region, markets were mostly lower. Australia's S&P/ASX 200, China's Shanghai Composite, and Hong Kong's Hang Seng index all posted losses. Investors remained cautious ahead of the release of key economic data, including China's June inflation figures.
Broader market caution was fueled by geopolitical events in the Middle East and minutes from the U.S. Federal Reserve's June meeting. The minutes indicated that policymakers remain concerned about persistent inflation risks, which could influence future monetary policy.