The MSCI Asia Pacific Index fell 0.7%, with 8 out of 11 sectors recording losses, and the regional semiconductor sector index dropped 1%. The divergence in market views on the artificial intelligence investment theme persisted, leading to the Kospi index closing down 1.5% after an intraday gain of 2.1%.

In the foreign exchange market, the Japanese Yen depreciated 0.3% against the US Dollar to 157.64, ending a four-day winning streak. Demand for Japan's 10-year government bond auction hit its lowest level since May 2025, causing the Japan 10-year government bond yield to rise 5 basis points to 2.87%.

In the commodities market, Donald Trump's remarks on US-Iran dialogue pushed WTI crude oil prices up 0.8% to approximately $81 per barrel, after a more than 5% drop the previous day. The US 10-year government bond yield rose 2 basis points to 4.69%.