06:39 AM EDT, 06/05/2026 (MT Newswires) -- Asian stock markets staged a retreat Friday, as traders warily eyed rich tech-sector valuations, overnight declines on Wall Street, and ongoing Middle East hostilities.

Hong Kong, Shanghai and Tokyo finished in the red, as did other regional exchanges.

Seoul's tech-centric KOSPI Index closed down 5.54%, tracking Thursday's decline in US semiconductor stocks, after US chipmaker Broadcom ( AVGO ) projected Q3 AI-related revenue would miss market expectations.

In Japan, the Nikkei 225 opened lower and could not recover, finishing off 1.3% as traders also edged away from high-flying tech issues.

The benchmark Nikkei 225 fell 882.57 to 66,588.12, although gaining issues outnumbered losers 129 to 95, as declines were concentrated in tech- and AI-related issues.

Leading the upside was Japan Steel Works, up 9%, while silicon wafer-maker Sumco declined 7.4%.

In economic news, average nominal wages in Japan rose 3.5% year over year in April, and gained 1.9% in real terms, reported the Ministry of Health, Labor and Welfare.

In Hong Kong, the Hang Seng Index opened lower and declined thereafter, closing down 1.2%.

The broad gauge Hang Seng fell 291.45 to 24,961.95, as losing issues outnumbered gainers 57 to 26. The Hang Seng TECH Index lost 1.8% on the day, while the Mainland Properties Index fell 0.9%.

Leading the upside was shipping line Orient Overseas, gaining 6%, while Semiconductor Manufacturing International declined 7.2%.

On the mainland, the Shanghai Composite fell 0.7% to 4,027.74.

On the other regional exchanges, the Taiwan TWSE declined 1.3%; the Australian ASX 200 declined 0.7%; the Singapore Straits Times Index fell 0.4%, and the Thai Set declined 0.8%. In late trading in Mumbai, the Sensex was down 0.1%

The MSCI All Country Asia Pacific Index fell 1.6% on the day.