The Japan Times - Stocks mixed with tech firms back under pressure

Investors have enjoyed a much-needed rally since Friday, following a month-long tech rout that slashed billions of dollars off valuations owing to concerns about the vast sums companies had pumped into artificial intelligence.

The recovery started with Seoul -- the poster child of the sell-off since June -- soaring almost 18 percent at the end of last week and recently battered chipmakers SK hynix and Samsung powering more than 25 percent higher.

That has fuelled speculation that the AI play was back as traders return to pick up bargain stocks.

However, the rally appeared to peter out Thursday following a tech retreat on Wall Street and disappointing earnings from US giants SanDisk and Western Digital that revived concerns over the profitability of the AI investments.

Seoul's Kospi shed more than four percent, led by a 10 percent plunge in SK hynix and Samsung's loss of more than six percent.

Tokyo's Nikkei -- another tech-heavy index -- lost nearly one percent, with chipmaker Kioxia down more than 10 percent and Tokyo Electron 5.5 percent off.

There was also selling in Hong Kong, Wellington, Manila and Taipei, though Shanghai, Sydney and Singapore rose with Mumbai and Bangkok.

London and Paris opened higher, while Frankfurt was flat.

While Wall Street was broadly negative, the Dow still mustered a gain to push it to a third straight record close.

Easing tensions in the Middle East and comments from Washington about a US-Iran deal to reopen the Strait of Hormuz have also helped equities this week by pushing oil prices down and tempering inflation and rate hike concerns.

However, both main contracts edged up Thursday even after Iran said it had agreed a route with Oman for ships transiting the waterway and were adding the final touches to arrangements for jointly managing it.

Official sources briefing Iranian media stressed that any reopening would depend on the United States fulfilling what Tehran sees as its commitment to end its own naval blockade of Iran's ports.

"The factors making the Strait of Hormuz insecure still exist on the part of the United States, particularly the naval blockade and other aggressive and threatening actions against Iran and its interests," said Iran Foreign Ministry spokesman Esmaeil Baqaei, according to state news agency IRNA.

Investors are keenly awaiting the release of key US jobs data Friday, hoping for an idea about the state of the economy as the Federal Reserve plots its next moves on borrowing costs.

Figures on Wednesday showed hiring in the US private sector was significantly below expectations in July, with industries like leisure and hospitality shedding jobs.

- Key figures around 0715 GMT -

Tokyo - Nikkei 225: DOWN 0.9 percent at 65,683.26 (close)

Hong Kong - Hang Seng Index: DOWN 1.8 percent at 25,442.46

Shanghai - Composite: UP 0.6 percent at 3,900.35 (close)

Seoul - Kospi: DOWN 4.6 percent at 6,296.38 (close)

London - FTSE 100: UP 0.1 percent at 10,902.91

Dollar/yen: UP at 157.83 yen from 157.79 yen on Wednesday

Euro/dollar: DOWN at $1.1544 from $1.1549

Pound/dollar: DOWN at $1.3457 from $1.3463

Euro/pound: UP at 85.79 pence at 85.78 pence

West Texas Intermediate: UP 0.3 percent at $75.47 per barrel

Brent North Sea Crude: UP 0.4 percent at $79.79 per barrel

New York - DOW: UP 0.5 percent at 54,349.12 (close)

M.Matsumoto--JT