Asian shares declined after fresh selling in semiconductor stocks brought back concerns over sustainability of AI trade.South Korea’s Kospi index fell over 6%, while Japan’s Nikkei 225 was down over 3%. MSCI’s Asia Pacific index declined 1.7%.
SK Hynix Inc declined over 8.4%.
Crude oil extended its gains post US’ renewed strikes on Iran, raising concerns that the West Asia tensions would further disrupt energy supplies. Brent gained for the fourth straight day to more than $85 a barrel.Australian and New Zealand government bonds opened higher.
While inflation reports eased concerns regarding near-term Fed hikes, the escalating conflict in the Persian Gulf has renewed concerns over energy supplies.
Investors are also assessing if strong earnings could sustain the AI rally post sharp swings semiconductor stocks exposing lingering concerns regarding the sector’s lofty valuations.
