Asian equities declined on Thursday as renewed weakness in technology shares and persistent concerns over stretched AI valuations pressured markets. Growing expectations that the Bank of Japan may adopt a more hawkish stance added to the cautious mood, while strong earnings from Micron provided only limited relief. The region broadly tracked overnight losses on Wall Street.
Japan’s Nikkei fell 1%, with investors increasingly convinced the BOJ will raise rates at the conclusion of Friday’s meeting. The combination of a persistently weak yen and stubborn domestic inflation has strengthened the case for policy tightening. Markets are also awaiting Japan’s November CPI release ahead of the decision.
Technology-heavy markets across the region were among the hardest hit. South Korea’s KOSPI slid 1.3%, while Hong Kong’s Hang Seng dipped 0.3%. Despite Micron’s upbeat guidance, chipmakers remained under pressure as investors grew wary of AI-driven valuations and continued to lock in profits.
Elsewhere, China’s CSI 300 dropped 0.7%, Australia’s ASX 200 edged down 0.2%, and Singapore’s Straits Times Index was little changed. With key U.S. inflation data and global central bank signals due soon, investors largely stayed on the sidelines.