Asian stock markets decline, tech stocks lose ground; South Korea and Japan see strong gains in February

Investing.com - Most Asian stock markets declined on Friday, with tech stocks following the weak performance of Wall Street overnight. However, South Korea and Japan are expected to record strong gains in February.

The Australian stock market is also poised for a strong month, while most other regional markets have had mixed performances in February.

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Asian markets received a weak opening signal from Wall Street, as Nvidia’s better-than-expected earnings report failed to boost the tech sector. Nvidia (NASDAQ: NVDA) fell 5.5% on Thursday.

Nasdaq 100 futures declined 0.3% during Asian trading.

KOSPI Index pulls back from all-time highs but is set for an impressive month

On Friday, South Korea’s KOSPI index was the worst performer among Asian markets, dropping up to 2% from recent record highs amid declines in some tech stocks. Chip giant Samsung Electronics (KS: 005930) and SK Hynix (KS: 000660) fell 0.9% and 2.6%, respectively, also retreating from all-time highs.

However, heavyweight Hyundai Motor (KS: 005380) performed strongly, rising 2.5% to a new high after the company announced plans to invest about 9 trillion won ($62.6 billion) in South Korea to build AI data centers and robotics factories.

The KOSPI has been a major beneficiary of AI-related hype, with most of its tech and industrial components seen as potential winners of this emerging technology. The index is expected to rise nearly 20% this month, making it the best-performing stock market in Asia so far.

Japan’s Nikkei Index remains flat, while the Tokyo Stock Exchange soars on weak inflation data

Japan’s Nikkei 225 declined 0.2% due to a drop in local tech stocks, while the broader Tokyo Stock Exchange (TSE) rose 0.8%.

Consumer Price Index data from Tokyo showed Japan’s February inflation cooling, with core inflation falling below the Bank of Japan’s 2% annual target.

This data is often seen as a barometer of nationwide inflation, and Friday’s figures suggest the Bank of Japan’s rate hike plans may face further reassessment.

This outlook boosted domestically focused stocks, especially as Prime Minister Fumio Kishida prepares to introduce more fiscal stimulus measures.

Expectations of additional fiscal support have been a key driver behind Japan’s stock market rally in February, with the Nikkei rising nearly 10% this month.

Across the broader Asian markets, performance was mixed on Friday. Australia’s ASX 200 was flat, but is expected to rise 3.3% in February, driven by gains in mining and banking stocks, which have hit record highs.

China’s CSI 300 index fell 0.5%, while the Shanghai Composite was unchanged, both showing a subdued performance in February.

Hong Kong’s Hang Seng index rose 0.7%, with internet giant Baidu up 1%, despite its Q4 earnings report being largely disappointing.

The Hang Seng index declined about 3.2% in February, weighed down by declines in local tech stocks amid concerns over increased disruptions from AI.

India’s Nifty 50 futures were flat. The index gained 0.6% in February, as sharp declines in local tech stocks amid AI concerns were offset by strong performances in industrial and manufacturing sectors, which are set to benefit from India’s AI data center construction.

Singapore’s Straits Times index rose 0.4% on Friday, up 1.6% this month, also reaching a new high.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.