Asia report: Asian stocks slide as tech sell-off deepens, China's CSI 300 enters bear market

(Sharecast News) - Asian stock markets were in the red on Thursday as tech stocks led a broad regional selloff, with Wall Street's earnings offering little relief from mounting concerns over soaring AI investment costs, while rising Gulf tensions pushed oil higher and dampened risk appetite.

As of 1030 BST, Japan's Nikkei 225 was down 2.65% at 62,907.84 and the Topix shed 1.14% to 3,997.50, while Korea's Kospi was down 3.52% at 5,533.77 and the small-cap Kosdaq was 3.62% weaker at 764.10.

Hong Kong's Hang Seng index was 3.10% lower at 22,919.11, while Mainland China's CSI 300 slipped 1.84% to 4,036.30, Australia's ASX was 0.43% lower at 8,793.20 and New Zealand's NZX dipped 0.11% to 13,746.84. Singapore's Straits Times Index was 0.57% softer at 5,406.89.

In China, the CSI 300 slid into bearmarket territory, now down 20% from its June peak after ten consecutive weekly declines, reflecting deepening pressure on mainland equities amid weakening industrial profits, intense competitive pricing and a broader economic slowdown tied to prolonged property sector stress and soft consumer demand.

Sentiment deteriorated after Meta's plan to issue nonvoting Class C shares revived worries over escalating capital commitments in the tech sector, while energy prices were also in focus, with Brent crude up 2.63% at $111.68 a barrel after further Houthi attacks in Saudi Arabia increased the risk of a wider conflict `in the Middle East and supply disruptions across the wider area.

In economic news, the Bank of Korea kept its base rate at 3.00% in October, pausing after two consecutive hikes as policymakers assessed how higher borrowing costs were feeding through to households and businesses. Inflation eased slightly to 2.9% in September but remained above target, while producer prices jumped 7.7%, raising the risk of further pass through costs. Strong semiconductor exports, helped by global AI demand, continued to support activity, prompting the central bank to lift its 2026 growth forecast to 3.3% from 2.6%.

Elsewhere, New Zealand's annual inflation slowed to 3.7% in the third quarter, undershooting expectations and pushing the kiwi lower to $0.5692, but remaining above the Reserve Bank of New Zealand's 1% to 3% target range. Quarterly CPI rose 0.7%, with petrol prices the biggest contributor despite easing from earlier levels, and house building costs also adding pressure. The softerthanforecast print reinforced expectations that the RBNZ will raise rates at its meeting next week.

On the corporate front, China Evergrande's liquidation was set to return only a tiny fraction of what creditors are owed, with courtappointed liquidators saying they have recovered just HKD $3.4bn (£323m) as of 30 September - less than 1% of the roughly $46bn in claims tied to one of China's largest property collapses.

Elsewhere, Australia's Westpac became the country's second major bank to announce job cuts linked to a broader operational overhaul, confirming around 250 roles will go this month, including 140 this week.

Reporting by Iain Gilbert at Sharecast.com