Asian Markets Tumbled Amid Weakness in Tech Stocks

 

Asian stocks declined sharply on Thursday (Dec. 19), with tech stocks losing largely after the Federal Reserve indicated a deceleration in interest rate cuts in 2025, signaling challenges for risk-driven markets. Markets focused on the Bank of Japan's interest rate decision after their expectations were split between a rate hike and an unchanged rate.

 

Japan's Nikkei 225 closed 0.69% lower after the Bank of Japan (BOJ) held interest rates steady in its December meeting of 2024. Although it remained cautious this time, the BOJ was inclined to have rate hikes in early 2025.

 

Elsewhere, the tech-heavy South Korean market had sharp declines. South Korea's KOSPI dropped 1.95%, weighed down by underperforming tech stocks like Samsung Electronics, which tumbled 3.28%, and SK Hynix, which plunged 4.63%. The sentiment remained fragile after the president's impeachment.

 

China's markets lost slightly with Hong Kong's Hang Seng index slipping 0.56% and the mainland's Shanghai Composite Index falling 0.36%. Losses were limited by optimism over Beijing's plans for increased fiscal spending in 2025.

 

As of press time, Singapore’s Straits Times Index edges 0.44% lower. Malaysia's FTSE Bursa Malaysia KLCI is down 0.27%.