Asian Stocks Dip on Tech Struggles
Asian shares experienced a predominantly downward trend, while US futures also declined on Thursday following a retreat, influenced by decreases in Big Tech stocks. Oil prices declined by over $2 a barrel following US President Donald Trump’s statement that he received reliable information indicating that plans for executions in Iran have ceased. This comes despite Tehran’s indication of swift trials and executions as part of its crackdown on protesters. US benchmark crude declined by $2, representing a 3.3 percent drop, settling at $59.88 per barrel. Brent crude, the international benchmark, declined by $2.12, or 3.2 percent, settling at $64.40 per barrel.
In Asian trading, Tokyo’s Nikkei 225 declined by 0.9 per cent to 53,863.84, as technology-related stocks experienced a downturn. SoftBank Group experienced a decline of 5.6 per cent, while testing equipment manufacturer Advantest saw a drop of 4.1 per cent, and chip maker Tokyo Electron fell by 3.3 per cent. Shares of machinery and equipment maker Toyota Industries increased by 6 per cent after reports emerged that automaker Toyota Motor has elevated its buyout offer for the company to 18,800 yen ($118.61) per share. Additionally, Hong Kong’s Hang Seng experienced a decline of 0.6 per cent, settling at 26,850.78. Shares of Trip.com, a Chinese online travel platform listed in Hong Kong, plummeted over 20 percent following Beijing’s announcement of an antitrust investigation into the company. The Shanghai Composite index experienced a decline of 0.6 per cent, settling at 4,101.52. South Korea’s Kospi increased by 0.5 percent, reaching 4,747.85. In Australia, the S&P/ASX 200 increased by 0.3 percent, reaching 8,851.00. Taiwan’s Taiex experienced a decline of 0.6 percent. Taiwan’s leading chip maker TSMC is anticipated to report robust quarterly profits in its earnings announcements on Thursday.
The futures for the S&P 500 and the Dow Jones Industrial Average experienced a decline of 0.1 per cent. On Wednesday, the S&P 500 experienced a decline of 0.5 percent, closing at 6,926.60, marking its second consecutive loss. The Dow declined by 0.1 percent, settling at 49,149.63. The Nasdaq composite declined by 1 percent, settling at 23,471.75. Big Tech stocks contributed to the underperformance, despite a general rise in the majority of stocks. This was partly due to investors retreating from the artificial intelligence excitement, while some critics cautioned that these stocks had become overvalued. Shares of Nvidia experienced a decline of 1.4 percent, while chip maker Broadcom saw a drop of 4.2 percent. Shares at several banks experienced a decline. Wells Fargo experienced a decline of 4.6 percent following the announcement of quarterly profit and revenue figures that fell short of expectations. Bank of America experienced a decline of 3.8 percent, while Citigroup saw a decrease of 3.3 percent. Exxon Mobil and other oil companies played a significant role in preventing the S&P 500 from experiencing more substantial losses. Exxon Mobil experienced an increase of 2.9 per cent, while Chevron saw a rise of 2.1 per cent.
Amid elevated geopolitical uncertainties, investors turned to safe-haven assets. The prices of gold experienced a decline on Thursday, dropping by 0.8 per cent, yet remained near their previous record levels. In the bond market, the yield on the US 10-year Treasury decreased to 4.14 per cent, a decline from 4.18 per cent late Tuesday, as investors shifted towards safer investments. Bond prices increase as yields decrease. In other dealings early Thursday, the dollar increased to 158.63 Japanese yen from 158.46 yen. The euro was trading at $1.1636, a decrease from $1.1645.
