Asian shares retreated on Thursday as technology stocks pulled back after an AI-driven rally, while investors kept an eye on developments surrounding a potential Iran peace deal and the upcoming US jobs report.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.69%, led by a 3.64% slide in South Korean shares and a 1.57% decline in Japan’s Nikkei. Samsung Electronics dropped 2.44%, while SK Hynix fell 6.95%. In Tokyo, Kioxia plunged 9.61% and Tokyo Electron declined 4.61%.
The pullback followed a weaker Wall Street session, with the Nasdaq ending a multi-day winning streak after investors remained cautious over lofty expectations for technology companies. Advanced Micro Devices fell despite beating analysts’ estimates, while concerns also emerged over the scale of data centre investment.
Oil prices remained relatively steady as markets assessed prospects for a deal involving Iran and Oman that could help reopen the Strait of Hormuz. Brent crude slipped 0.18% to US$79.31 a barrel while US West Texas Intermediate fell 0.35% to US$74.96.
Commonwealth Bank of Australia senior geo-economics analyst Madison Cartwright said a deal to reopen the Strait of Hormuz could be reached by early September, although he remained sceptical that an agreement was imminent.
Meanwhile, investors are turning towards Friday’s US non-farm payrolls report after ADP data showed private employers added just 44,000 jobs in July, below expectations. Futures markets now price a 54% chance of a Federal Reserve rate hike in September, down from 58% a day earlier.
Reuters
