Asian Shares Mixed As Tech Stocks Track Declines In US Peers

(RTTNews) - Asian stocks ended mixed on Wednesday as investors locked in profits in tech stocks amid concerns over valuations and reports of potential U.S. government equity stakes in major chipmakers.

Investors also kept a close eye on ongoing Ukraine peace talks and looked ahead to Fed Chair Jerome Powell's Jackson Hole speech due this week for more clarity on September rate cuts.

Gold hovered near a three-week low in Asian trading as the dollar extended gains for a third day, climbing to a more than one-week high ahead of the release of minutes from the Fed's July meeting later in the day. Oil prices inched up slightly after ending lower in the previous session.

China's Shanghai Composite index jumped 1.04 percent to 3,766.21 as the People's Bank of China kept its benchmark loan prime rate unchanged as expected despite recent weak economic data.

Hong Kong's Hang Seng index ended up 0.17 percent at 25,165.94, reversing early losses after the Trump administration said it was targeting more imports of Chinese goods, including steel, copper and lithium, for high-priority enforcement over alleged human-rights abuses involving the Uyghurs.

Japanese markets fell sharply to extend losses for a second day running as chip-related companies succumbed to selling pressure on concerns about government intervention in the semiconductor sector.

Investors also reacted to data that showed Japan's exports sustained their steepest drop in more than four years in July. Separate set of data revealed that Japan's core machinery orders rose 3 percent in June from the previous month.

The Nikkei average tumbled 1.51 percent to 42,888.55 while the broader Topix index settled 0.57 percent lower at 3,098.91. SoftBank shares plunged 7.1 percent, Advantest plummeted 5.7 percent and Tokyo Electron gave up 1.4 percent.

Seoul stocks ended lower for a third consecutive session as big-cap tech shares tracked overnight losses of U.S. tech giants. The Kospi average shed 0.68 percent to close at 3,130.09. Naver, LG Energy Solution and SK Hynix lost 2-3 percent.

Australian markets ended slightly higher, erasing early losses. The benchmark S&P/ASX 200 rose 0.25 percent to 8,918, with rate-sensitive banks and real estate stock pacing the gainers. The broader All Ordinaries index finished marginally higher at 9,177.40.

Miners fell as iron ore prices weakened on reports that China plans to reduce steel production. Building materials firm James Hardie plunged almost 28 percent on disappointing quarterly results.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.10 percent to 13,071.30 as the Reserve Bank of New Zealand delivered another interest-rate cut and flagged more easing.

U.S. stocks ended mostly lower overnight as tech stocks faced selling pressure amid apprehensions that intense enthusiasm surrounding artificial intelligence could be overdone.

The tech-heavy Nasdaq Composite tumbled 1.5 percent and the S&P 500 declined 0.6 percent while the Dow finished marginally higher as Home Depot affirmed its guidance and said demand is improving.