On Thursday morning (5 February, 9:36 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited a downward trend, with a retreat from global technology stocks, as concerns mounted over elevated valuations and increased artificial intelligence expenditures. The ongoing sector shift follows a significant selloff in the Nasdaq 100, which registered its steepest two-day fall since October and dropped below its 100-day moving average.
Investor sentiment worsened following after-hours share declines in Alphabet Inc., Qualcomm Inc., and Arm Holdings Plc. These drops came after their latest earnings reports failed to match market expectations.
Additionally, robust performance in the U.S. economy has also prompted investors to diversify away from technology names, turning instead to other sectors.
Japan’s NIKKEI fell by 0.77% to 53,874.24. South Korea’s KOSPI slumped by 3.18% to 5,200.36, and Australia’s ASX 200 declined by 0.32% to 8,899.40.
As for stocks in China, Shanghai’s SSEC dropped by 1.06% to 4,058.79. Shenzhen’s SZI decreased by 1.88% to 13,890.36, and Hong Kong’s HSI lost 1.44% to 26,459.56.
The U.S. stock markets were mixed on Wednesday as NASDAQ plummeted by 1.51% to 22,904.57. S&P 500 shrank by 0.51% to 6,882.72, while the Dow Jones Industrial Average (DJIA) rose by 0.53% to 49,501.30. VIX jumped by 3.56% to 18.64.
As for commodities, oil prices settled higher on Wednesday, buoyed by remarks from U.S. President Donald Trump addressing Iran’s Supreme Leader, Ayatollah Ali Khamenei, which emphasized that Khamenei “should be very worried” amid ongoing negotiations.
Trump reiterated that military action remains a possibility if Iran fails to reach an agreement over its nuclear activities. This follows earlier episodes where the U.S. president threatened intervention during domestic unrest in Iran, before ultimately refraining from direct action. Brent crude futures advanced by $2.13, or 3.16%, closing at $69.46 per barrel. Meanwhile, U.S. West Texas Intermediate crude finished up $1.93, or 3.05%, at $65.14 per barrel.
This morning, Brent crude futures lost $1.30, or 1.87%, to $68.16 per barrel, and the WTI fell $1.23, or 1.89%, to $63.91 per barrel.
Meanwhile, gold futures climbed by 0.07% to $4,954.50 per Troy ounce.
