Asian Stocks Slide on Tech Selloff, Oil Slips: Markets Wrap

(Bloomberg) — Stocks in Asia retreated as tech shares were hit by a renewed selloff after Thursday’s blistering rally, underscoring the heightened volatility that has gripped the sector this week.

A gauge of Asian equities was down 2% and South Korea’s tech-heavy Kospi slumped more than 4%. Nasdaq 100 futures dropped 0.8% while S&P 500 futures slipped 0.4%. SoftBank Group Corp.’s shares plunged 13% on concerns that OpenAI may hold off on an initial public offering, delaying returns for its Japanese backer. The ChatGPT maker is leaning toward holding off the IPO until 2027, the New York Times reported.

The moves in Asia followed a choppy session on Wall Street — the benchmark ended flat, failing to sustain an early rally fueled by Micron Technology Inc., as Apple Inc.’s shares slumped 6.1%. The iPhone maker led the Magnificent Seven lower after it raised prices on Macs, iPads and home devices.

Elsewhere, Brent fell to trade below $75 a barrel after climbing on Thursday, when a projectile strike on a vessel in the Strait of Hormuz renewed concerns about safe passage through the vital waterway following a recent pickup in traffic. Bond traders trimmed bets for a Federal Reserve interest-rate hike in the months ahead after the central bank’s favored inflation gauge rose less than estimated.

“A few cracks have developed in the tech sector recently,” said Matt Maley at Miller Tabak. “Therefore, we believe it will be extremely important to watch how these hyperscalers trade going forward because if they continue to decline, it’s going to make it very tough for the rest of the market to advance.”

Global equity markets are capping a volatile week that has seen concerns over the potential payoff from massive AI investments drive sharp moves in tech stocks. Although Micron’s blockbuster results and strong outlook provided some reassurance, investors remain cautious. The MSCI Asia Pacific Index as well as the S&P 500 are down in June, heading for their first monthly decline this quarter.

The Nasdaq 100 Index finished up 0.8% on Thursday, after having climbed as much as 2.1%. Besides Micron, Qualcomm Inc. shares also jumped after it forecast annual sales of more than $15 billion from artificial intelligence components in data centers by fiscal 2029.

However, shares of SK Hynix Inc., Samsung Electronics Co. and Kioxia Holdings Corp. were among the biggest drags on the Asian benchmark on Friday, following a surge in the previous session. Shares of Apple’s suppliers in Asia fell.

What Bloomberg Strategists say:

“Investors have been betting on unending blue skies for AI themes, so any setback is always likely to generate an outsized response on the downside as stocks positioning is adjusted. The close proximity of the June month-end may be adding to the rush to trim exposure.”

— Mark Cranfield, Markets Live strategist. Click here for the full analysis.

In commodities, gold was steady after rebounding above $4,000 an ounce in the previous session as traders tempered expectations for interest-rate hikes. Elsewhere, the Bloomberg Dollar Spot Index edged higher after losing 0.2% on Thursday, when it snapped a three-day winning run.

Meanwhile, the Fed’s preferred inflation gauge, the personal consumption expenditures price index, rose 0.4% in May, below economists’ median estimate for a 0.5% increase. The annual rate accelerated to 4.1%, well above the Fed’s 2% target. A separate report showed the US economy grew at an annualized 2.1% pace in the first quarter, faster than previously estimated.

Interest-rate swaps linked to future Fed rate decisions showed a drop in wagers on a hike this year, pricing in about 34 basis points of tightening by the December policy meeting versus some 36 basis points at Wednesday’s close. The chance of a rate increase next month dwindled to about one-in-three.

Federal Reserve Bank of New York President John Williams said interest rates are well positioned to bring inflation back toward the central bank’s target. Officials left rates steady last week while signaling growing support for rate hikes this year.

“Until there is greater clarity on inflation, policy direction and geopolitical developments, the front end of the curve provides a compelling balance of return and risk that longer maturities struggle to match,” said Yulia di Mambro, portfolio manager for fixed income at Federated Hermes. “The 1–3-year segment seems particularly attractive.”

Corporate Highlights:

JPMorgan Chase & Co.’s latest management revamp is elevating two Wall Street veterans at the bank — one who cut his teeth trading bonds and currencies and the other who spent years inside boardrooms advising CEOs — placing them in pole position to succeed Chief Executive Officer Jamie Dimon. The US Army struck deals with several companies to build critical minerals processing plants on military bases around the country, a first-of-its-kind initiative by the Trump administration to boost domestic production of key materials. Microsoft Corp. announced a third substantial price increase for the company’s current-generation Xbox video-game consoles in a glaring example of the component shortage crisis that has universally driven up the cost of consumer tech products. Jefferies Financial Group Inc. posted second-quarter earnings that missed analysts’ estimates as fees declined from a business overseen by its asset-management unit, which bet on the embattled auto-parts supplier First Brands Group. The surge in SK Hynix Inc. shares hasn’t only boosted South Korean billionaire Chey Tae-won’s wealth. It’s also expected to protect his control of the company from an upcoming divorce settlement that will likely be the nation’s largest ever. China’s DeepSeek, fresh off agreements for a blockbuster fundraising, said it is working to at least double the size of all departments, as it steps up efforts to compete with domestic rivals and global leaders such as OpenAI and Anthropic PBC. Darden Restaurants Inc. posted a cautious overall profit outlook as same-store sales at Olive Garden trailed expectations, raising questions about demand that overshadowed better-than-expected earnings Spices and seasonings maker McCormick & Co. reported second-quarter profit that beat estimates, buoyed by higher prices and a tariff refund, and reaffirmed its full-year guidance. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.3% as of 10:56 a.m. Tokyo time Japan’s Topix fell 1% Australia’s S&P/ASX 200 rose 0.2% Hong Kong’s Hang Seng fell 1.1% The Shanghai Composite fell 1% Euro Stoxx 50 futures fell 0.4% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1359 The Japanese yen was little changed at 161.80 per dollar The offshore yuan was little changed at 6.8032 per dollar Cryptocurrencies

Bitcoin fell 0.1% to $59,302.48 Ether was little changed at $1,557.52 Bonds

The yield on 10-year Treasuries was little changed at 4.39% Japan’s 10-year yield was unchanged at 2.625% Australia’s 10-year yield was little changed at 4.73% Commodities

West Texas Intermediate crude fell 0.9% to $71.26 a barrel Spot gold fell 0.2% to $4,020.33 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Ruth Carson.

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