Asian shares took a breather on Thursday after an AI-driven surge the previous day while oil prices traded in a tight range as markets assessed prospects for an Iran peace deal.

In Hong Kong, the Hang Seng Index opened down 248 points, or 0.96 percent, at 25,667 before losses widened to put the benchmark 467 points, or 1.8 percent, down at 25,448 at one stage in early trade.

The China enterprises index was 48 points, or 0.56 percent, lower at 8,555 while the tech index was down 48 points, or 0.99 percent, at 4,884.

Up north, the Shanghai Composite Index opened down 14 points, or 0.36 percent, at 3,864.

The Shenzhen Component Index was lower by 162 points, or 1.15 percent, at 13,981 while the ChiNext Index slipped 63 points, or 1.78 percent, to 3,472.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.69 percent, led by declines in tech firms.

In Tokyo, the Nikkei fell 1,176 points, or 1.78 percent, to 65,123 at one stage before midday after opening down 404 points, or 0.61 percent, at 65,896 as heavyweight tech stocks tracked losses in Wall Street peers, outweighing gains in most stocks.

In Seoul, the Kospi opened 119 points, or 1.81 percent, lower at 6,478 before its losses accelerated to leave the benchmark 322 points, or 4.89 percent, lower at 6,275 at one stage before lunch as heavyweight chipmakers Samsung Electronics and SK Hynix tracked US technology stocks lower.

A senior Iranian source ⁠and two regional officials said a proposed deal between Iran and Oman to help end five months of war between Iran and the United States would give Tehran control over ships entering the Gulf through the Strait of Hormuz, one of the biggest concessions yet to Iran.

Oil prices were steady in the US$70-a-barrel range.

Madison Cartwright, senior geo-economics analyst at Commonwealth Bank of Australia, said a deal to reopen the Strait of Hormuz could be reached by early September, though he remained sceptical that a deal was imminent.

"Iran still has more leverage and will extract additional concessions from the US under any new deal," Cartwright said in a note.

Investors are now turning their attention to US labour market data ahead of Friday's closely watched nonfarm payrolls report.

ADP figures on Wednesday showed private employers added 44,000 workers last month, slowing from 95,000 in June and coming in about 25,000 below expectations. (Reuters/Xinhua)



Edited by Tony Sabine