Asian shares are mostly lower as Kospi falls 4% and tech giants decline on Wall Street

Asian stock markets experienced a predominantly downward trend on Thursday, following a decline in South Korea's Kospi by more than 4%. The sell-off was notably felt in the technology sector, with several major tech companies experiencing losses. SK Hynix, a key player in the memory chip market, saw its shares drop by 9.7% following a decline in its early trading session in Seoul, while Samsung Electronics also suffered a 6.1% decrease.

The nationwide decline in Asian shares was attributed to profit-taking and caution ahead of the upcoming U.S. nonfarm payroll report on Friday. Despite strong corporate profits and expectations for continued growth in the U.S. market, Asian indexes have been impacted by the volatility surrounding the artificial intelligence boom. This selling pressure has particularly affected companies involved in the tech sector, including computer chip manufacturers.

The Kospi closed at 6,306.40, marking a decline of 4.5%, while Japan's Nikkei 225 fell 1.2% to 65,538.44. In Hong Kong, the Hang Seng Index dropped 1.8% to 25,463.51, and the Shanghai Composite index saw minimal movement, remaining nearly unchanged at 3,878.92. Australia's S&P/ASX 200, however, managed a small gain of 0.5%.

The uncertainty surrounding the resolution of the ongoing conflict in the Strait of Hormoz, which has disrupted global oil supplies, continues to cast a shadow over the markets. Despite claims by U.S. President Donald Trump of an imminent deal to reopen the strait, market participants remain cautious as the situation remains fluid. The upcoming employment report from the U.S. is anticipated to provide further insights into the impact of the conflict on the global economy.