SEOUL, December 18 (AJP) - Asian equity markets ended broadly lower on Thursday as fallout from an “Oracle shock” weighed on technology shares and investors stayed cautious ahead of the Bank of Japan’s (BOJ) interest rate decision.
Most major benchmarks declined, though mainland China’s Shanghai Composite showed relative resilience, appearing largely insulated from weakness in U.S. technology stocks.
South Korea’s benchmark KOSPI fell 1.53 percent to 3,994.51, slipping back below the psychologically important 4,000 level and posting one of the steepest losses among major Asian markets, alongside the Shenzhen Component.
Foreign investors were heavy sellers, offloading 356.3 billion won ($241 million), while institutional investors sold 101.2 billion won. Retail investors bucked the trend, buying a net 424.2 billion won.
The Korean won extended its weakness, trading at 1,478.7 per dollar at 4:10 p.m. local time, down 0.2 won from the previous session. The currency remains under pressure from sustained foreign outflows and expectations of a BOJ rate hike.
Heavyweight stocks outperformed the broader market. Samsung Electronics slipped 0.28 percent to 107,600 won. Losses linked to Oracle-related sentiment were partly offset by strong earnings from Micron Technology, which lifted the outlook for the memory chip sector. SK hynix edged up to 552,000 won but pared earlier gains after hitting a session high of 563,000 won.
The secondary battery sector suffered sharp losses after Ford, a key customer for South Korean manufacturers, scrapped contract plans and dissolved a joint venture, citing the electric vehicle market “chasm.”
LG Energy Solution plunged 8.9 percent to 378,500 won, Samsung SDI fell 6.1 percent to 277,000 won, and SK Innovation, the parent of SK On, dropped 5.16 percent to 104,800 won. Materials supplier EcoPro Materials slid 6.35 percent.
Korea Zinc sank 5.7 percent to 1,306,000 won amid controversy surrounding its joint venture with the U.S. Department of Defense. Investor sentiment deteriorated following reports that warrants issued during the process carried an exercise price of just 1 cent, while the U.S. side is set to receive more than $100 million a year in fees.
In Japan, the Nikkei 225 dropped 1.03 percent to 49,001.5, pressured by technology weakness and caution ahead of the BOJ policy meeting. Semiconductor-related stocks led declines, with Advantest falling 3.32 percent to 18,805 yen ($120.6), Tokyo Electron down 3.22 percent, and Ibiden sliding 4.33 percent.
Automakers showed mixed performance. Honda fell 2.53 percent to 1,543 yen following news of a brake-related recall in the U.S., while Toyota rose 0.42 percent to 3,363 yen, benefiting from apparent rotation within the sector. Financial stocks posted more moderate losses, with Mitsubishi UFJ Financial Group and Mizuho Financial Group down about 1 percent.
Taiwan’s TAIEX was relatively steady, slipping 0.21 percent to 27,468.53. TSMC ended flat at 1,430 Taiwan dollars ($45.3), while MediaTek and Hon Hai Precision Industry (Foxconn) recorded modest declines.
Mainland Chinese markets were mixed. The Shanghai Composite rose 0.16 percent to 3,876.37, while Hong Kong’s Hang Seng Index edged down 0.25 percent. Technology shares underperformed, with the Shenzhen Component falling 1.29 percent. Battery maker CATL dropped 2.98 percent and automaker BYD slid 1.76 percent.
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