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Asian tech rally reverses

Asian equities fell sharply on Friday, following gains a day earlier, led by steep losses in Japan and South Korea, as investors took profits in technology shares after Apple’s sharp drop revived concerns about AI-related valuations and rising chip costs. US stocks ended mixed on Thursday, with gains in semiconductor shares led by Micron helping the Nasdaq 100 outperform and the Dow Jones Industrial Average reach a record high, even as Apple weighed on broader sentiment. European equities also closed higher on Thursday, while oil prices fell again on Friday despite renewed tensions involving Iran, signalling that markets remain focused on the supply outlook.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Mixed markets
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Asian equities fell sharply on Friday, led by South Korea and Japan, as investors took profits in technology shares after Apple’s 6.1% drop on Thursday revived concerns about lofty AI-related valuations and rising chip costs. South Korea’s KOSPI tumbled 5.6% and Japan’s Nikkei 225 lost 4.1%, while shares in chipmakers Samsung Electronics and SK Hynix each fell more than 6% after a strong rally a day earlier. Markets in China also weakened, with the CSI 300 down 2.4% and the Shanghai Composite off 1.5%. In macroeconomic data, Tokyo inflation data released on Friday showed core consumer prices rose 1.6% year-on-year and an underlying measure accelerated to 1.1% from 0.7%. The broader regional decline came despite support from Micron’s strong results earlier this week, as investors remained uneasy about technology demand and volatile AI-linked valuations.

US stocks mixed as Dow hits record

US stocks ended mixed on Thursday, with the Dow Jones Industrial Average rising 0.1% to a record 51,920.62 points as easing inflation worries, hopes for an end to the Iran war and firmer-than-expected economic data supported sentiment. Technology shares were lifted by memory-chip maker Micron, whose strong results and upbeat outlook sent its stock up 15.7%, while other semiconductor names including Qualcomm and Applied Materials also advanced sharply. The Nasdaq 100 gained 0.8% to 29,440.32 points, but the S&P 500 slipped marginally to 7357.49 points as Apple fell 6.1% after announcing unusually steep price increases.

US inflation accelerates in May

US core personal consumption expenditures inflation rose to 3.4% year-on-year in May, up from 3.1% in April, while the headline rate increased to 4.1% from 3.6%, according to data released on Thursday. The monthly increases were 0.3% for core prices and 0.4% for the overall index, with energy costs again the main driver as the Iran war pushed fuel prices higher and broader price pressures spread to other parts of the economy. Personal spending also increased by 0.7% in May, exceeding inflation and market expectations, while personal income rose by the same amount. Separate data released on Thursday showed first-quarter US GDP growth was revised up to an annualised 2.1% from 1.6%, partly because of lower imports, while weekly jobless claims fell to 215,000 from 227,000.

German consumer climate steadies

German consumer sentiment for July improved slightly to -29.2 points, from a revised -29.7 in the previous month, according to data released on Thursday, though it remained weak overall. Economic expectations improved to -8.7 from -11.2 and price expectations fell to -2.9 from -0.4, with the report linking the modest improvement to easing inflation concerns as crude oil prices declined and tensions in the Middle East cooled. European stock indices closed higher on Thursday. The Euro Stoxx 50 rose 0.9%, while Germany’s DAX gained 1% and France’s CAC 40 added 0.6%. Switzerland’s SMI also advanced, rising 0.8% on Thursday.

Oil falls despite Iran tensions

Oil prices declined on Friday as investors looked past renewed tensions involving Iran and focused instead on the prospect of limited supply disruption. After a brief increase a day earlier, Brent crude fell around 2% to USD 74 a barrel, while US West Texas Intermediate also dropped about 2% to trade around USD 70, even after a US official said Iran was behind an attack on a cargo ship near Oman in the Strait of Hormuz. Gold and bitcoin remained under pressure, with gold trading around USD 4020 per ounce on Friday, while bitcoin was around USD 60,000. The US Dollar Index fell slightly from recent highs.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Italian trade balance (12:00), US trade balance (14:30), University of Michigan Consumer Sentiment Index (16:00).

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