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As the first dawn of 2024 unfolded, people gathered on a footbridge in Seoul, poised to witness the sunrise against the city’s skyline. This symbolic moment, captured by Jung Yeon-je of AFP/Getty Images, marked the beginning of another year.
Meanwhile, halfway across the globe, Asia-Pacific markets experienced a downturn on Thursday. This came as investors on Wall Street shifted their focus away from the technology sector. Stocks associated with artificial intelligence faced significant pressure following a report by the Financial Times. The publication disclosed that Blue Owl Capital, a major investor in Oracle, had withdrawn its financial backing from one of Oracle’s data center projects. This move resulted in Oracle’s AI-related stock plunging by 5.4%.
The ripple effects were felt across the tech sector, with other companies linked to AI also seeing their stock values dip. Notable names affected included Broadcom, the semiconductor powerhouse; Nvidia, often hailed as a leader in AI development; and Advanced Micro Devices (AMD), another prominent player in the chip-making industry.
Amidst these market tremors, attention in Asia turned to the Bank of Japan, which is set to begin a critical two-day meeting. Speculation is rife that the central bank will announce an increase in interest rates to 0.75% on Friday, a level not seen in three decades, indicating a significant policy shift in the region.
Other stocks tied to the AI trade also fell, including chipmaker Broadcom, AI darling Nvidia, and Advanced Micro Devices.
Over in Asia, the Bank of Japan will kick off its two-day meeting, with the central bank expected to raise rates to 0.75% Friday, its highest level in 30 years.
Japan’s Nikkei 225 lost 1.03% to close at 49,001.5, leading losses in Asia, while the Topix fell 0.37% to 3,356.89. Softbank Group Corp was among the top losers in the benchmark Nikkei 225, falling as much as 7.25%. The group pared some losses and was last trading 3% lower.
Other Japanese tech stocks also fell. Semiconductor equipment supplier Advantest, dropped as much as 5%. Counterparts Lasertec, Renesas Electronics and Tokyo Electron declined between 3% and 4%.
South Korea’s Kospi was down 1.53% to 3,994.51, and the small-cap Kosdaq was 1.07% lower at 901.33.
Australia’s S&P/ASX 200 closed flat at 8,588.2.
Shares of Australian energy giant Woodside Energy declined 1.84% after the firm announced that CEO and managing director Meg O’Neill had resigned and accepted the role of CEO at British oil and gas major BP.
Hong Kong’s Hang Seng index traded 0.76% lower, while the mainland CSI 300 declined 0.59% to 4,552.79. Shares of Chinese chipmaker MetaX Integrated Circuits slid as much as 7% after soaring nearly 700% in their market debut in Shanghai on Wednesday. The company raised nearly $600 million in its initial public offering.
Overnight in the U.S., all three major indexes fell, with the S&P 500 down 1.16%, and the Nasdaq Composite seeing the largest loss of 1.81%. The Dow Jones Industrial Average slipped 0.47%.
Traders are awaiting the release of the U.S. consumer price index reading for November, due Thursday morning. It will mark the first consumer inflation report issued to the public since the government shutdown ended last month. Economists polled by Dow Jones expect that headline inflation grew at a 3.1% pace on a year-over-year basis.
—CNBC’s Lim Hui Jie, Pia Singh, Sean Conlon and Liz Napolitano contributed to this report.
