Oracle fell more than 10% after announcing plans for a $20 billion fundraising round, while attention shifted to Friday's highly anticipated SpaceX IPO.

In Japan, the Nikkei 225 dropped 2.1% below 63,000 and the Topix lost 1.4%. Technology and AI-related shares led the decline, while expectations for a Bank of Japan rate increase next week remained a key theme.

The dollar index held near 100 as tensions in the Middle East and disruptions around the Strait of Hormuz kept inflation concerns alive. Recent US inflation data showed the fastest annual increase in more than three years, reinforcing expectations that the Fed could raise rates later this year.

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