BANGKOK – On Thursday, Asian markets experienced further declines, following a sharp downturn in U.S. stocks, particularly those in the AI sector, marking the U.S. market’s most significant drop in nearly a month.

Investors are eagerly anticipating the latest U.S. inflation data and the Bank of Japan’s impending decision on interest rates, slated for Friday. Despite a contraction in the economy during the July-September period, the central bank is projected to increase its key interest rate by 0.25 percentage points to address rising price levels.

In Tokyo, the Nikkei 225 fell by 1.2% to close at 48,929.95, with technology stocks bearing the brunt of the losses.

Notably, Tokyo Electron, a prominent semiconductor manufacturer, saw its shares tumble by 3.5%, while Advantest, a company specializing in chip testing equipment, experienced a 4.1% decline.

Honda Motor Corp. also faced a setback, with its shares dropping 2.9% amid reports of halted production at several of its facilities in Japan and China due to a shortage of computer chips.

South Korea’s Kospi sank 1.8% to 3,989.06, also pulled lower by selling of shares in electronics companies and automakers. LG Electronics declined 4.3%, while Samsung Electronics lost 1.6%.

Chinese markets were mixed as Hong Kong’s Hang Seng fell 0.4% to 25,357.64, while the Shanghai Composite index edged 0.2% higher, to 3,876.40.

In Australia, the S&P/ASX 200 edged 0.1% lower to 8,575.50.

Later Thursday, the U.S. government will report on inflation last month. Economists expect that report to show prices for U.S. consumers continue to rise faster than anyone would like.

On Wednesday, the S&P 500 fell 1.2% to 6,721.43 and the Dow Jones Industrial Average dipped 0.5% to 47,885.97. The Nasdaq composite dropped 1.8% to 22,693.32.

Slightly more stocks rose within the S&P 500 than fell, but they got drowned out by the drops for companies in the artificial-intelligence industry.

The sector is being pressured by questions over whether Big Tech companies’ share prices have shot too high, whether all the investment in AI will be profitable and productive enough to justify the costs, and by worries over stratospheric levels of debt some companies are taking on to pay for it all.

Broadcom dropped 4.5%, Oracle fell 5.4% and CoreWeave sank 7.1%. Nvidia, the chip company that’s become Wall Street’s most influential stock because of its tremendous size, fell 3.8% and was the day’s heaviest weight on the S&P 500.

Power companies that jumped earlier in the year on expectations for stronger demand from electricity-sucking data centers also lost some of their shine. Constellation Energy fell 6.7%.

On the winning side of Wall Street were oil companies, after President Donald Trump ordered a blockade of all “sanctioned oil tankers” into Venezuela.

That sent the price of a barrel of benchmark U.S. crude higher by 1.2% to $55.94. just a day after it sank to its lowest level since 2021.

Early Thursday, U.S. crude was up 43 cents at $56.24 per barrel. Brent crude, the international standard, gained 40 cents to $60.08 per barrel. It had climbed 1.3% on Wednesday.

That in turn helped ConocoPhillips rise 4.6%. Devon Energy rallied 5.3%, and Exxon Mobil climbed 2.4%.

Oil prices have been falling for most of this year on expectations that companies are pumping more than enough crude to meet the world’s demand.

Netflix added 0.2% after Warner Bros. Discovery’s board said it still recommends shareholders approve a buyout offer from the streaming giant for its Warner Bros. business, rather than a competing hostile bid from Paramount Skydance for the entire company.

Warner Bros. Discovery fell 2.4%, while Paramount Skydance dropped 5.4%.

In other dealings early Thursday, the U.S. dollar rose to 155.75 Japanese yen from 155.70 yen. The euro slipped to $1.1740 from $1.1743.