Asian Stocks Fall, Broadcom Shakes AI and Geopolitical Trends Weigh Down Sentiment
Asian stocks weakened on Thursday (June 4th) as US index futures declined, after Broadcom's forecast disappointed the market and US-Iran tensions again weighed on risk appetite. The MSCI Asia Pacific fell around 1%, ending a four-day rally that had pushed the index to a record high, with shares in Japan and South Korea leading the decline.
The biggest pressure came from the technology sector after Broadcom's outlook was deemed insufficient to sustain the AI hype. Broadcom shares fell sharply in after-hours trading, pushing Nasdaq 100 futures down around 0.6% and triggering further selling in chip stocks. The market viewed this as a test for the AI rally, which has been a major driver of record global equity gains.
On the geopolitical front, the latest US-Iran clashes added to caution, although markets briefly caught a breather after the US announced a ceasefire between Israel and Lebanon. Oil edged lower, with Brent down about 0.7% to around US$97/barrel, but energy prices remained high, keeping inflation concerns at bay.
The dollar strengthened as a defensive asset, while gold fell as markets refocused on higher interest rates for longer. Energy inflation pressures and strong US jobs data pushed yields higher and increased bets that the Fed's next move could be a rate hike, not a cut.
In Asia, the yen held near 160 per dollar after comments by Bank of Japan Governor Kazuo Ueda made the chance of a rate hike this month seem likely, but not certain. Market focus next shifts to US weekly jobless claims data, ahead of Friday's payrolls release, which could determine interest rate expectations and the dollar's direction. (asd)
Source: Newsmaker.id
