Investing.com - APAC shares retreated on Thursday following a late reversal in US stocks overnight, which saw early gains evaporate as the market's rebound faltered.
After the first 30 minutes of trade, the S&P/ASX 200, KOSPI 200, and Nikkei 225 fell 0.5%, 1.4% and 1.6%, respectively.
In the US, strong early gains for stocks disappeared before the market closed, with the S&P 500 falling 0.8% after climbing as much as 1.7%. This marked its biggest reversal of gains in more than two years. Similarly, the tech-heavy NASDAQ Composite and Dow Jones Industrial Average also reversed significant early gains, ending the session down 1% and 0.6%, respectively.
The declines tempered Tuesday's recovery after a sharp sell-off to start the week, reducing the S&P 500's gains for the year to 9%. Weak performance in technology, healthcare, and consumer discretionary sectors dragged the S&P 500 lower, although gains in the energy, financial, and consumer staple sectors provided some support.
Walt Disney Company (NYSE:DIS) shares fell 4.5% after the company projected challenges for its theme parks business. Airbnb Inc (NASDAQ:ABNB) shares plummeted 13% following a warning of slowing US demand. Super Micro Computer Inc (NASDAQ:SMCI) shares also declined 20% after reporting lower-than-expected earnings.
Brent crude oil rose 2.4% to US$78.33 a barrel, while Gold remained flat at US$2,382.02.
Chinese shares ended mixed, with gains in energy and auto sectors offsetting losses in property and semiconductor stocks. The Shanghai Composite Index rose 0.1% to 2,869.93, while the Shenzhen Composite Index fell 0.1% and the ChiNext Price Index declined 0.4%.
Notable gains included China Coal Energy up 4.5%, and Chongqing Changan Automobile rising 2.2%. However, China Vanke fell 1.3%, and semiconductor stocks like Will Semiconductor and Giga Device Semiconductor declined 2.5% and 1.6%, respectively.
Hong Kong shares ended higher, with the Hang Seng Index rising 1.4% to 16,877.86 and the Hang Seng Tech Index closing 1.2% higher.
Asian equities continued to recover broadly after Monday's massive sell-off, following reassurances from the Bank of Japan about interest rates.
Shanghai Hongqiao rose 5.0%, Trip.com added 4.9%, and China Mengniu Dairy gained 4.2%. Sands China dropped 2.5%, and Galaxy Entertainment fell 2.2%.
Japan's Nikkei Stock Average increased 1.2% to close at 35,089.62, reversing earlier losses due to dovish remarks from a Bank of Japan official and the yen's weakness.
Disco Corp. jumped 12.4%, Sumitomo Mitsui Financial Group climbed 10.2%, and Mitsubishi Heavy Industries rose 9.9%. The 10-year JGB yield fell 1 basis point to 0.875%.
India's Sensex closed 1.1% higher at 79,468.01, reflecting broad regional gains.
Adani Ports and Special Economic Zone rose 3.4%, Power Grid Corp. of India gained 3.3%, and JSW Steel was 2.6% higher. IndusInd Bank fell 2.5%, while Titan Co. and Tech Mahindra each lost 0.3%.
UK stocks gained on Wednesday, with the FTSE 100 Index rising 1.7% to 8,166.88. TP ICAP (LON:NXGN) Group PLC surged 7.8%, Alphawave IP Group PLC increased 5.6%, and Quilter PLC rose 4.6%. However, Abrdn PLC fell 4.5%, THG PLC declined 2.8%, and WH Smith PLC dropped 2.6%.
Elsewhere in Europe, markets closed higher. The STOXX Europe 600 Index rose 1.5% to 495.96, Germany's DAX gained 1.5% to 17,615.15, and France's CAC 40 increased by 1.9% to 7,266.01.