Nikkei, Hang Seng, Shanghai and Kospi end the session in negative territory
Asian stock markets closed lower on Friday, June 5, 2026, as investors trimmed positions in technology stocks and sectors most exposed to global growth. Market sentiment was primarily affected by fading enthusiasm surrounding artificial intelligence following disappointing results and outlooks from several major U.S. semiconductor companies, as well as renewed geopolitical concerns in the Middle East.
Among the region's leading benchmarks, South Korea's market suffered the steepest decline, with the Kospi experiencing a sharp correction driven by heavy selling in semiconductor stocks. Japan's Nikkei also finished lower, while Hong Kong and Shanghai recorded more moderate losses.
Closing levels of the main Asian indices
- Nikkei 225 (Tokyo): 66,588.12 points (-1.31%)
- Hang Seng Index (Hong Kong): 24,961.95 points (-1.15%)
- Shanghai Composite Index: 4,027.74 points (-0.74%)
- Kospi (Seoul): 8,160.59 points (-5.50%)
Technology stocks were the primary driver behind the market downturn. A sharp decline in several artificial intelligence-related companies in the United States triggered profit-taking across Asian markets, particularly among Japanese and South Korean semiconductor manufacturers. Investors also remained cautious ahead of the release of U.S. labor market data, considered crucial for assessing the Federal Reserve's next interest-rate decisions.
On the geopolitical front, markets continued to closely monitor developments in the Middle East. According to Reuters, slower progress in negotiations between the United States and Iran, combined with ongoing tensions between Israel and Iran-backed militias, contributed to a broader risk-off environment across global financial markets. Although oil prices showed some volatility, investors remain concerned about potential disruptions to energy supplies and their impact on global economic growth.
Among the day's other economic developments, Japan reported a fourth consecutive month of growth in real wages, although the data failed to provide meaningful support for equity markets. In China, investors continue to await additional stimulus measures from Beijing aimed at strengthening the economic recovery and supporting domestic demand.
Andrea Pelucchi