Asia report: Tech stocks tumble in Tokyo and Seoul, but Hong Kong surges

(Sharecast News) - Stocks across Asia were mixed on Thursday as selling pressure in the chip and AI sectors weighed on Tokyo and Seoul, while shares in Hong Kong and Sydney gained on the back of the global equity market rally following the US mid-term elections.

The KOSPI in South Korea sank 5.3% due to big losses from heavyweights Samsung Electronics and SK Hynix amid heightened concerns that the Democrats' sweeping victory in Washington could lead to greater scrutiny of AI infrastructure spending and data centre development.

Japan's Nikkei 225 also fell 1.8% with blue chip tech stocks Advantest, Tokyo Electron and SoftBank falling sharply.

One bright spark was Toyota Motor after the Japanese automaker raised its full-year operating profit forecast to ¥3.9trn from ¥3.4trn, citing cost reductions, improved earnings from its wider business operations and reduced tariff-related costs. First-half results were driven by resilient vehicle sales and strong demand for hybrid models.

In contrast, Hong Kong's Hang Seng index surged 3.7% as tech giants Alibaba, Tencent, Xiaomi and Meituan rose strongly.

Australia's S&P/ASX 200 jumped 2.6% with mining stocks tracking metals prices higher, including BHP, Rio Tinto and Fortescue. Gains were partly offset by weakness in the energy sector as crude prices dropped, with Woodside Energy and Santos firmly in the red.

Meanwhile, National Australia Bank shares tumbled after the Australian lender reported a 13.4% decline in annual net profit to A$6.1bn for the year to September, reflecting a large one-off charge and higher credit impairment costs.

Elsewhere, the Shanghai Composite edged 0.1% higher, the Sensex jumped 2.6% while the Strait Times Index gained 0.5%.