(Sharecast News) - Asia-Pacific markets traded mixed on Thursday as investors weighed South Korea's latest monetary policy decision against softer sentiment in global technology stocks and fresh regulatory developments in China.
South Korean equities climbed to a record after the Bank of Korea left interest rates unchanged, while Japanese shares pulled back from recent highs and Chinese markets were mixed.
"Asia's leading stock index slipped from its peak, and US equity futures edged lower as the S&P 500 Index recorded its first consecutive losses of the year," noted Patrick Munnelly, market strategy partner at TickMill.
Kospi in the green as Bank of Korea holds rates
In South Korea, the Kospi 100 rose 1.56% to a record 5,334.48 after the central bank held its benchmark interest rate at 2.50%, in line with Reuters' expectations.
Policymakers signalled caution on easing, noting that the recent slide in the won had narrowed room for rate cuts.
Posco ICT surged 29.92%, Korea Zinc jumped 11.47% and Hanwha Systems gained 9.41%.
Munnelly noted that "the South Korean won weakened after gaining some ground on Wednesday," adding that the move came after "US treasury secretary Bessent made rare comments acknowledging the currency's steep declines," which only briefly supported the won as it hovered near its weakest levels since 2009.
Japan, China markets mixed
Japanese markets were mixed - the Nikkei 225 fell 0.42% to 54,110.50 after hitting record highs for a second straight session on Wednesday, pressured by weakness in large-cap stocks including SoftBank Group, down 4.93%, KDDI, which slid 2.76%, and Fanuc, off 2.67%.
In contrast, the broader Topix index rose 0.68% to 3,668.98.
The retreat aligned with what Munnelly described as "the stock market spotlight ... on investors stepping away from overvalued tech stocks," a shift that has weighed on high-flying names across global markets.
Mainland Chinese shares were uneven - the Shanghai Composite slipped 0.33% to 4,112.60, with sharp losses in Beijing Piesat Information Technology, down 12.45%, China Fortune Land Development, which fell 10.2%, and Henan Dayou Energy, off 10.04%.
The Shenzhen Component outperformed, rising 0.41% to 14,306.73.
The mixed performance came amid a broader reassessment of China-related risks, as Munnelly highlighted that "while commodities pulled back from their highs, the stock market spotlight was on investors stepping away from overvalued tech stocks," against a backdrop of renewed concerns around trade and regulation.
Hong Kong stocks edged lower, with the Hang Seng Index down 0.28% at 26,923.62.
Trip.com Group plunged 19.23% after China's market regulator said it had opened an investigation into the online travel platform over suspected monopolistic behaviour.
Alibaba Health Information Technology declined 7.84% and NetEase fell 3.18%.
Australasian markets diverge
In Australia, the S&P/ASX 200 advanced 0.47% to 8,861.70, supported by gains in South32, up 4.55%, BSP Financial Group, which added 4.4%, and Bluescope Steel, up 4.17%.
New Zealand equities lagged, with the S&P/NZX 50 falling 0.71% to 13,659.79 as Vista Group International dropped 6.38%, Serko slid 6.15% and NZX declined 4.1%.
Oil prices fall as dollar trades mixed
In currency and commodity markets, investors digested a sharp pullback in energy and metals prices.
Munnelly said that "oil prices declined for the first time in nearly a week after [US] president Trump suggested he might delay any immediate action against Iran," adding that "Brent crude dropped by as much as 3.3% on Thursday following Trump's remarks that he was reassured by reports indicating Iran's leadership might halt the killing of protesters."
He also noted that "precious metals also took a hit, retreating from their recent record highs," with silver falling as much as 7.3% and gold, platinum and palladium also lower.
Brent crude futures were last down 3.41% on ICE at $64.25 per barrel, while the NYMEX quote for West Texas Intermediate slid 3.47% to $59.87.
In currency markets, the dollar was little changed against the yen, last trading up 0.06% at JPY 158.56, while it slipped 0.22% against the Aussie to AUD 1.4932 and edged 0.02% higher on the Kiwi to change hands at NZD 1.7393.
Reporting by Josh White for Sharecast.com.
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