Asian Shares Slide Amid Tech Selloff

(RTTNews) - Asian stocks fell broadly on Thursday even as softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest-rate hikes.

Investors weighed escalating tensions in the Middle East after the United States launched a new wave of attacks in multiple locations across Iran on Wednesday night and Iran retaliated by launching fresh attacks on U.S. military bases in neighboring Gulf States, raising concerns over global shipping.

The U.S. dollar stabilized in Asian trade after touching a one-month low. Gold prices fell nearly 1 percent toward $4,000 an ounce as traders focused on inflation risks stemming from higher energy prices and supply disruptions linked to the Iran war.

Brent crude futures were slightly lower below $85 a barrel, but stayed close to one-month highs after Iran said it has no plans for negotiations and remains focused on its defense.

Chinese shares ended sharply lower, a day after data showed China's economy slowed more than expected last quarter to the weakest in more than three years.

China's Shanghai Composite index fell 1.85 percent to 3,882.41 while Hong Kong's Hang Seng index surged 1.33 percent to 25,008.60.

Alibaba rallied 3.1 percent and Baidu climbed 2.6 percent after Apple confirmed new AI partnerships in China.

Japanese markets tumbled as heavyweight semiconductor-related stocks declined on concerns over the durability of the artificial intelligence-led rally.

The Nikkei average plunged 2.79 percent to 66,835.54 while the broader Topix index settled 1.45 percent lower at 4,028.79. Tokyo Electron, Advantest and SoftBank fell 5-6 percent while flash memory chipmaker Kioxia Holdings lost 15 percent.

Seoul stocks nosedived as investors offloaded technology heavyweights despite record earnings from Taiwan Semiconductor Manufacturing Company.

The Kospi index slumped 6.37 percent to 6,820.60, with Samsung Electronics falling 8.8 percent and SK Hynix losing 11.5 percent.

The Korean won rose for a fifth straight session against the dollar to hit over a two-month high as the Bank of Korea raised interest rates for the first time in 3-1/2 years, aiming to counter persistent inflationary pressure amid the intensifying conflict in West Asia.

Australian markets reversed early losses to end on a flat note. Mining stocks underperformed, with BHP falling 2.3 percent after flagging a decline in copper output in the year ahead.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dipped 0.15 percent to 13,614.78, marking a fourth straight session loss.

Overnight, U.S. stocks fluctuated before closing mostly higher, the dollar weakened and bond yields dipped as softer-than-expected producer price data bolstered the view that the Federal Reserve can remain patient on interest rates.

Data showed the producer prices index for final demand unexpectedly dropped 0.3 percent last month after a downwardly revised 0.6 percent increase in May.

Federal Reserve Bank of New York President John Williams said that inflation may have peaked and should begin easing but remains "unquestionably too high".

The tech-heavy Nasdaq Composite gained 0.6 percent, the S&P 500 added 0.4 percent and the Dow rose 0.3 percent.