Asian shares and US stock futures declined on Thursday following a rally on Wall Street, where stronger-than-expected earnings from SpaceX, Capital One Financial and other major companies lifted stocks.
Japan's Nikkei 225 fell 1.6% to 63,595.58, led by heavy selling of major technology stocks. SoftBank Group dropped 5.6%, while Tokyo Electron declined 5.9% and Advantest lost 5%.
South Korea's Kospi index slipped 2.6% to 5,586.89, as major memory chipmakers came under pressure. Samsung Electronics fell 3.9%, while SK Hynix dropped 4.7%.
Technology stocks linked to artificial intelligence (AI) have faced selling pressure amid concerns that rising borrowing costs could slow investment in data centre construction.
Hong Kong's Hang Seng Index lost 2.7% to 23,003.17, while the Shanghai Composite Index declined 0.9% to 3,679.86. Taiwan's Taiex fell 0.8%, and Australia's S&P/ASX 200 dropped 0.3% to 8,803.20.
On Wednesday, US stocks advanced after several major companies reported better-than-expected earnings. The S&P 500 rose 0.6%, the Dow Jones Industrial Average gained 0.7%, and the Nasdaq Composite climbed 1.1%.
SpaceX shares jumped 7.8% after the company reported stronger-than-expected summer profits. Its chief executive, Elon Musk, also said the company had taken a step towards considering a possible merger with Tesla, his electric vehicle maker. Tesla shares gained 3.4%.
Capital One Financial rose 2.5%, while Winnebago Industries surged 10.7% after reporting earnings that exceeded analysts' expectations.
Investors are closely watching corporate earnings to determine whether companies can sustain their growth despite persistent inflation, high interest rates and other economic challenges.
Netflix shares, however, fell 5.3% despite the streaming company's stronger-than-expected profit, as investors expressed concerns about a possible slowdown in its growth.
In the bond market, the yield on the 10-year US Treasury note climbed to 5.12%, recovering from an earlier decline.
Oil prices also rose on Thursday amid uncertainty over the war involving Iran and its impact on global energy supplies. Brent crude, the international benchmark, gained 1.6% to $110.55 a barrel, while US benchmark crude increased 1.3% to $98.45 a barrel.
Brent crude prices have fluctuated between $97 and $112 in recent days as markets assess when the conflict will allow global energy supplies to return to normal.
In currency trading, the US dollar fell to 157.69 Japanese yen from 158.14 yen late Wednesday. The euro rose to $1.1248 from $1.1233.