The recent rally in Asian equity markets, largely driven by gains in artificial intelligence stocks, lost momentum mid-week as geopolitical uncertainty resurfaced.
Investors grew cautious following reports that peace negotiations between the United States and Iran have stalled, casting a shadow over risk sentiment across the region.
Despite the broader cooling, technology shares remained a key support for regional benchmarks.
The Nikkei 225 and South Korea’s Kospi showed resilience, underpinned by continued strength in the semiconductor and AI sectors.
This divergence highlights the uneven impact of geopolitical risks on different market segments, with growth-oriented tech names proving more insulated than broader market indices.
The shift in tone marks a departure from the earlier session, where Asian markets had opened higher on Wednesday, July 1, buoyed by a combination of geopolitical relief and sustained tech sector momentum.