Asian equities retreated on Friday, pulling back from recent record highs as a sharp sell-off in heavyweight technology stocks weighed on regional sentiment, following renewed concerns over inflationary pressures in the global tech supply chain.
The MSCI Asia-Pacific ex-Japan index fell 1.7%, extending its weekly decline to 3.4%, after touching a record high earlier in the week.
Japan’s Nikkei led regional losses, sliding 3%, while South Korea’s KOSPI dropped 3.5% and was on track for a weekly decline of 5%. China’s CSI300 index eased 1%, while Hong Kong’s Hang Seng Index lost 1.3%.
Sentiment was dented after Apple shares plunged 6.1% overnight on Wall Street following price increases for iPads and MacBooks aimed at offsetting rising memory and storage chip costs. The move sparked concerns that inflationary pressure from the AI-driven semiconductor boom is beginning to filter through consumer electronics.
Despite strong earnings momentum in the chip sector, including a surge in Micron, broader tech indices remained under pressure, with Nasdaq futures slipping 0.6% in Asian trading.
In currencies, the Japanese yen hovered near a 40-year low at 161.82 per US dollar, with traders wary of potential intervention as the currency remains under sustained pressure from monetary policy divergence between Japan and the United States.
In commodities, Brent crude slipped 0.5% to US$74.89 a barrel, while spot gold extended its monthly decline, down around 11%, reflecting a stronger dollar and shifting risk sentiment.
Overall, markets also remained cautious amid mixed US economic signals, including stronger-than-expected growth and persistent inflation above 4%, which reinforced expectations that the Federal Reserve could maintain a tighter policy stance for longer.
Reuters
