Asian stocks today: Nikkei, Kospi fall over 4% as technology stocks weigh; Samsung shares slide

Asian stocks today: Asian markets traded lower as technology stocks came under fresh selling pressure, with shares of Samsung Electronics Co. falling after the company reported its earnings.

South Korea's Kospi fell 4%, while the small-cap Kosdaq index slipped 0.72%. Japan's Nikkei 225 traded marginally lower, although the broader Topix index edged up 0.60%.

Australia's benchmark S&P/ASX 200 declined 0.12%. Meanwhile, Hong Kong's Hang Seng index futures were trading at 23,571, below the benchmark's previous close of 23,616.32.

What's driving Asian markets today?

Technology stocks were among the biggest laggards, with Samsung sliding more than 5% despite reporting a 19-fold jump in quarterly profit. The Kospi Index declined 3.5%, while SK Hynix shares fell 1% after the company officially launched the marketing process for its US listing.

In commodities, West Texas Intermediate (WTI) crude slipped below $69 per barrel amid signs of increasing oversupply, as Saudi Arabia cut oil prices and shipping activity through the Strait of Hormuz improved.

In the US, short-term Treasury notes advanced during the New York trading session. Meanwhile, the Japanese yen remained largely unchanged at around 162.08 against the dollar, even as hedge funds built their largest bearish positions on the currency since 2007.

Volatility in technology stocks has also prompted investors to seek clearer evidence that the artificial intelligence (AI) rally can maintain its pace. Although US semiconductor stocks delivered a record quarterly performance, market participants are now assessing whether elevated capital expenditure, intensifying competition and capacity expansion will translate into the earnings growth required to support current high valuations.

Asian investors initially focused on Samsung’s earnings, with the company reporting a 19-fold jump in quarterly profit that comfortably exceeded market expectations. The strong performance was driven by soaring demand for memory chips used in AI-powered data centres.

Meanwhile, in the US, short-term Treasury bonds advanced as the impact of last week’s robust jobs report continued to influence markets. The data reinforced expectations that the Federal Reserve is less likely to raise interest rates in the months ahead.

US stock market today

US markets closed higher on Monday, led by a rally in chipmakers such as Broadcom, as investors increased bets on artificial intelligence-linked companies ahead of what is expected to be a strong second-quarter earnings season.

The S&P 500 rose 0.72% to finish at 7,537.43, while the Nasdaq Composite gained 1.12% to close at 26,121.16, kicking off the new trading week after Friday’s U.S. Independence Day holiday. Meanwhile, the Dow Jones Industrial Average advanced 155.84 points, or 0.29%, to settle at a record 53,055.91 after also touching an all-time intraday high.

(With inputs from agencies)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.