Asian equities fell on Friday, with South Korea posting the region's steepest losses as technology stocks tracked an overnight decline in US chipmakers and other artificial intelligence-linked shares. Investors also monitored developments in the Middle East, which continued to shape sentiment across financial markets.
South Korea's Kospi dropped 6.29%, making it the worst-performing major market in Asia. Japan's Nikkei 225 fell 1.34%, while Australia's ASX 200 lost 0.51%.
The moves came after a mixed session on Wall Street, where investors shifted away from technology stocks even as broader US equities advanced.
Wall Street Signals Rotation
The Dow Jones Industrial Average rose 874.86 points, or 1.73%, to a record close of 51,561.93. The S&P 500 gained 0.41% to finish at 7,584.31. In contrast, the Nasdaq Composite slipped 0.09% to 26,830.96 as chipmakers and other technology names came under pressure.
The divergence suggested investors were rotating into non-technology sectors despite strength in the broader market.
Middle East Developments Remain Key
Markets also continued to assess developments surrounding the conflict involving Iran and its regional allies.
President Donald Trump said ceasefire talks were in the "final" stages. Earlier, Iran's foreign minister said negotiations had stalled.
The latest comments followed an escalation on Wednesday, when Iran launched missiles and drones at Kuwait and Bahrain after the US struck an oil tanker headed to the Islamic Republic. The attack killed one person and injured dozens at Kuwait's main airport.
In Lebanon, Hezbollah said it would not comply with conditions attached to a ceasefire announced by the US State Department only hours earlier.
Currency Markets Under Watch
Asian traders are also monitoring regional currency markets as geopolitical tensions continue.
The South Korean won weakened to its lowest level since 2009, highlighting pressure on some Asian currencies as the conflict involving Iran persists.
Oil, Gold and Bitcoin
Brent crude steadied at about $95.20 a barrel after falling in the previous session. Oil prices eased as investors bet the US and Iran were moving closer to a diplomatic breakthrough following a conditional ceasefire between Israel and Lebanon. The decline came despite Hezbollah rejecting a US-backed truce proposal.
Gold largely held gains from the previous session and traded near $4,460 an ounce. US Treasuries advanced on Thursday as investors assessed the prospects of a US-Iran peace agreement.
Bitcoin edged higher to trade around $63,700.
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