06:43 AM EDT, 10/22/2026 (MT Newswires) -- Asian stock markets largely retreated Thursday amid mounting concerns about Middle East hostilities and the sustainability of rich tech-sector valuations.

Hong Kong, Shanghai and Tokyo finished in the red, as did most other regional exchanges. Seoul's semiconductor-laden KOSPI index fell 3.5%.

Brent crude prices rose 2.8% to $111.88 a barrel during Asian market hours, after Washington ordered the evacuation of non-emergency US personnel and families in Saudi Arabia.

In Japan, the Nikkei 225 opened evenly but declined thereafter, finishing off 2.6% as traders backed away from semiconductor- and AI-related shares.

The benchmark Nikkei 225 fell 1,713.40 to 62,907.84, as losing issues outnumbered gainers 140 to 81.

Leading the upside was cybersecurity company Trend Micro, up 8.7%, while semiconductor materials maker Resonac declined 11.2%.

In Hong Kong, the Hang Seng Index opened lower and fell to the bell, closing down 3% as tech shares faded.

The broad gauge Hang Seng fell 717.19 to 22,934.68, as losing issues outnumbered gainers 94 to one. The Hang Seng TECH Index lost 5% on the day, while the Mainland Properties Index fell 2.6%.

Leading the scant upside was home appliance maker Midea, gaining 0.5%, while computer manufacturer Lenovo declined 10.9%.

On the mainland, the Shanghai Composite fell 1.5% to 3,658.03.

In economic news, foreign direct investment into China fell by 4.3% on-year to $82.2 billion in the first nine months of 2026, reported the Ministry of Commerce.

On the other regional exchanges, the Taiwan TWSE declined 1.8%; the Australian ASX 200 declined 0.4%; the Singapore Straits Times Index fell 0.4%, but the Thai SET index rose 0.4%. In late trading in Mumbai, the Sensex was down 0.5%.

The MSCI All Country Asia Pacific Index fell 1.7% on the day.

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