Asian stocks mostly down with tech firms back under pressure

Global stock markets showed a mixed performance on Thursday, with tech firms facing fresh pressure and investors eagerly awaiting news on a potential United States-Iran deal to reopen the Strait of Hormuz. Oil prices saw a slight increase as traders awaited confirmation of a possible deal.

In London, Paris, and Frankfurt, stocks rose near midday, while alcoholic beverage company Diageo led the index with a 7% gain after announcing a significant cost-cutting plan to combat declining profits. Siemens, an industrial giant, saw a 5% drop in Frankfurt after its earnings fell short of investor expectations.

In Asia, tech-heavy indices faced a decline due to concerns over the profitability of artificial intelligence investments after US giants SanDisk and Western Digital reported disappointing earnings. Elon Musk's SpaceX also experienced a sharp share price drop following weaker-than-expected results, raising worries about its substantial AI spending.

The tech sector had rallied earlier in the week, following a month-long slump that caused billions of dollars in valuation losses. However, tech stocks in Seoul, known for its sell-off since June, dropped more than 4%, led by a 10% plunge in SK Hynix and a 6% decline in Samsung's share price. Tokyo's Nikkei, another tech-heavy index, fell nearly 1%, with chipmaker Kioxia dropping over 10% and Tokyo Electron more than 5% lower.

Hong Kong, Wellington, Manila, and Taipei also saw selling, although Shanghai, Sydney, and Singapore gained. Easing tensions in the Middle East and comments from Washington about a potential US-Iran deal to reopen the Strait of Hormuz helped maintain oil prices at a relatively stable level, easing inflation and rate hike concerns. Officials briefed Iranian media stated that any reopening would depend on the US fulfilling its commitment to end its naval blockade of Iran's ports.

The market is cautious and awaiting confirmation from the White House regarding the deal's progress, as a false dawn scenario would be detrimental. Investors are eagerly anticipating the release of key US jobs data on Friday, hoping for insight into the economy as the Federal Reserve considers its next steps in managing borrowing costs. On Wednesday, the US reported that private sector hiring in July was significantly below expectations, with leisure and hospitality sectors shedding jobs.