Stocks in Asia opened lower on Thursday following a late plunge in US tech companies, with the yen rebounding after a sharp decline the previous day. The drop in Asian shares came after two days of gains, with Japan, Australia, and Hong Kong all seeing losses.
The tech sector took a hit in late US trading hours after Micron Technology Inc. failed to meet industry expectations with its outlook. This news also affected other chipmakers, including Nvidia Corp. The Federal Reserve’s announcement that the biggest US banks passed the annual stress test did little to boost market sentiment.
The yen strengthened on Thursday after reaching its lowest level since 1986, prompting speculation that officials may intervene to support the currency. The currency has lost more than 12% against the dollar this year, contributing to a broader decline in Asian currencies.
Market analysts pointed to the Federal Reserve’s influence on market dynamics, with higher interest rates drawing money into the US and strengthening the dollar. The recent attempt to broaden market participation beyond megacap tech companies was short-lived, highlighting concerns about the rally’s sustainability.
In commodities, gold held steady after a recent decline, while West Texas Intermediate edged lower. Key economic events this week include China industrial profits, Eurozone economic confidence, US durable goods, and Nike earnings.
Overall, market sentiment remains cautious as investors assess the impact of recent tech sector volatility and broader market trends. The story continues to unfold as investors await further economic data and corporate earnings reports.
