Key facts
- Asian stocks were mixed on Wednesday, following a global selloff in technology and semiconductor shares.
- The MSCI Asia-Pacific index outside Japan was down 0.02%, while South Korea jumped 2.2% and Japan's Nikkei fell 0.8%.
- US stocks fell overnight, with the S&P 500 down 1.4% and Nasdaq Composite down 2.2%, amid concerns over AI spending and potential Fed hawkishness.
- Oil prices extended losses, trading near four-month lows, as more tankers prepared to move out of the Strait of Hormuz.
- The Japanese yen hovered near 40-year lows against the dollar, raising concerns about potential intervention.
- Spot gold extended losses, falling 0.48% to $4,088.71 an ounce.
Asian stocks showed mixed performance on Wednesday, following a global selloff in technology and semiconductor shares. Analysts expressed concerns about market instability and the risk of renewed volatility.
The MSCI Asia-Pacific index, excluding Japan, was down 0.02%. South Korea's market, which experienced a sharp 10% decline on Tuesday, rebounded with a 2.2% jump. Japan's Nikkei index fluctuated, ultimately trading down 0.8%.
Wall Street overnight reflected a risk-off sentiment, with the Dow Jones Industrial Average falling 0.09%, the S&P 500 down 1.4%, and the Nasdaq Composite down 2.2%. These declines were attributed to worries about debt-fueled AI spending and the possibility of a more hawkish Federal Reserve. Treasury yields fell as investors sought safety in government debt, with the benchmark U.S. 10-year note yield dropping to 4.493%.
Oil prices continued their decline, nearing four-month lows, as more stranded tankers in the Gulf were expected to move out of the Strait of Hormuz. However, uncertainty persists regarding the durability of a US-Iran peace accord, with conflicting accounts emerging on key elements.
The Japanese yen weakened significantly against the dollar, trading near 40-year lows at 161.57 per dollar, fueling speculation of potential currency intervention. Minutes from the Bank of Japan's recent meeting indicated that some board members advocated for further interest rate hikes.
The dollar index, measuring the greenback against a basket of major currencies, rose 0.02% to 101.43. The euro declined 0.06% to $1.1375, and the British pound weakened 0.08% to $1.3192.
Spot gold prices extended their losses, falling 0.48% to $4,088.71 an ounce, as higher rate expectations diminished the appeal of non-yielding assets. In cryptocurrencies, Bitcoin gained 0.84% to $62,914.94, and Ethereum rose 0.43% to $1,669.35.