Asian Shares Follow Wall Street Lower On AI Concerns

(RTTNews) - Asian stocks ended mostly lower on Thursday after the S&P 500 and the tech-heavy Nasdaq plummeted to three-week lows overnight on concerns about lofty valuations for technology stocks.

After recent employment data painted a mixed picture of the world's largest economy, traders also braced for key U.S. inflation reading later in the day that could influence the Federal Reserve's rate trajectory in the new year.

The dollar was broadly firm in Asian trade ahead of a slew of central bank meetings this week. Gold dipped slightly but hovered near record levels on Fed rate cut bets.

Oil prices climbed on supply disruption concerns stemming from Venezuela and Russia.

China's Shanghai Composite index edged up by 0.16 percent to 3,876.37 as cash- strapped China Vanke kicked off a second meeting with bond holders to extend its debt payments and avoid a default.

Hong Kong's Hang Seng index finished 0.12 higher at 25,498.13 after a choppy session. Japanese markets hit three-week lows as investors weighed the outlook for artificial intelligence and data center businesses and looked ahead to the Bank of Japan's policy meeting conclusion on Friday, with the central bank expected to raise interest rates to the highest level in three decades.

The Nikkei average fell 1.03 percent to 49,001.50 while the broader Topix index settled 0.37 percent lower at 3,356.89. Advantest, SoftBank and Fujikura lost 3-4 percent.

Seoul stocks sank on continued concerns over the profitability of the artificial intelligence (AI) sector. The Kospi average tumbled 1.53 percent to 3,994.51.

Battery Maker LG Energy Solution nosedived 8.9 percent after Ford Motor cancelled a 9.6 trillion won ($6.5 billion) battery agreement with the company.

Australian markets recovered from an early slide to finish marginally higher, snapping a three-day losing streak as gains in technology stocks offset losses in the energy sector. Woodside Energy tumbled 2.7 percent after its Chief Executive Officer Meg O'Neill resigned to become the CEO of BP Plc.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dipped 0.29 percent to 13,256.77 despite data showing robust Q3 GDP growth.

U.S. stocks fell sharply overnight, with semiconductor and stocks tied to the AI trade losing further ground after reports emerged that Oracle's primary investor pulled out of one of its data center projects.

The tech-heavy Nasdaq Composite lost 1.8 percent while the S&P 500 shed 1.2 percent and the Dow dropped half a percent to extend losses for a fourth consecutive session.