Non-tech sectors in Asia gained, with Straits Times index up 0.3%, while KOSPI was flat as losses in tech were offset by gains in industrials

Most Asian stocks dropped on Thursday as technology shares tumbled.

Japanese markets were the worst hit by tech and AI losses.

Non-tech sectors in Asia gained, with Straits Times index up 0.3%, while KOSPI was flat as losses in tech were offset by gains in industrials.

Shanghai Shenzhen CSI 300 index declined 0.2%, while the Shanghai Composite index shed 0.5%. Hang Seng index was flat.

ASX 200 added 0.2% as softer-than-expected labour market data fuelled some expectations that the Reserve Bank will be forced into cutting interest rates.

Nifty 50 index, which has a relatively smaller weightage of tech stocks, advanced 0.2%.

Japanese shares lagged their peers on Thursday, with the Nikkei 225 index down 0.8%, while the TOPIX dropped 0.7%.

The Nikkei was weighed chiefly by losses in AI-linked tech and industrial stocks.

Oracle slipped more than 10% in aftermarket trade on Wednesday, while major chips supplier Nvidia shed more than 1%.

SoftBank Group Corp., which is heavily exposed to Oracle and the AI trade through its OpenAI position, slipped over 8% and was the biggest decliner on the Nikkei.

Japanese stocks also remained under pressure from a continued diplomatic row between Tokyo and Beijing, over earlier comments made by Japanese Prime Minister Sanae Takaichi on Taiwan.

Chinese Chipmaking stocks extended losses into a third straight session as the prospect of Nvidia reentering the market pointed to heightened competition in the sector. Semiconductor Manufacturing International Corp, the country’s biggest chipmaker, and Hua Hong Semiconductor Ltd), both lost nearly 2.5% each in Hong Kong trade.

TSMC, the world’s largest contract chipmaker, dropped 2.3% in Taiwan trade, after it said on Wednesday that its sales in November declined from the prior month.