Investing.com– Most Asian stocks fell on Thursday, with technology shares tracking losses from their Wall Street peers following disappointing guidance from internet giant Meta Platforms, while fears of a rate hike of US interests remained in play.
US stock index futures fell sharply in Asian trade, with losses tilted towards the technology sector, while Meta and its peers sank in after-hours trading. Meta (NASDAQ:) fell 15% after forecasting lower-than-expected second-quarter revenue due to rising AI costs.
This has raised concerns about the revenue potential of AI for tech companies, given that it also comes with much higher costs. Meta’s forecasts set a gloomy tone for the upcoming results of Microsoft Corporation (NASDAQ:) and Alphabet Inc (NASDAQ:).
Japan’s Nikkei 225 slides on tech sector losses, BOJ expects
Japan’s index was the worst performer in Asia, falling 1.8% as major technology stocks suffered losses.
The broader fell 1.1%, while sentiment towards Japanese markets was also dented by the anticipation of a Friday.
While the BOJ is expected to keep interest rates unchanged following March’s historic hike, markets have been wary of any hawkish signals on inflation, especially following recent signs of improving wage growth and economic resilience Japanese.
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The European Commission released its GDP assessment report, also due on Friday, which is expected to show a slight pick-up in inflation through April.
South Korea’s KOSPI falls as tech jitters offset strength in earnings and GDP
South Korea’s index fell 1% on Thursday, weighed down by losses in technology stocks, while weakness on Wall Street more than offset earnings and positive economic data.
The memory chip manufacturer SK Hynix Inc (KS:) fell 3.3% despite first-quarter earnings coming in well above expectations thanks to AI-fueled demand. But the chipmaker also forecast an increase in expenses as it ramps up production to meet the expected surge in demand.
The analogue Samsung Electronics Co Ltd (KS:) fell 1.9%. The two titles are by far the most important of the KOSPI.
Weakness in technology stocks offset optimistic data that showed the South Korean economy grew 1.3% in the first quarter, more than double what was expected.
Other Asian markets were rather mixed. Chinese indices fell slightly, while the Hong Kong index extended its rebound to hit five-month highs.
Indian index futures point to a muted opening as sentiment towards the country cools ahead of the 2024 general elections, which begin on Friday. The ruling party, the BJP, is expected to win a third consecutive term.
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Australian markets remained closed for holidays.
