Asian stocks today: Asian markets fell on Thursday, 2 July, after a selloff in US chipmakers reignited concerns that the AI-led rally has outpaced underlying fundamentals.
South Korea's Kospi plunged 5.36% at the open, prompting the Korea Exchange to impose a five-minute trading halt to rein in market volatility, while the small-cap Kosdaq fell 3.55%.
Japan's Nikkei 225 also declined 2%, although the broader Topix edged up 0.13%. Australia's benchmark S&P/ASX 200 also slipped 0.59%. Meanwhile, The MSCI Asia Pacific Index as a whole dropped 0.9%.
Why Asian markets are falling today?
US stock index futures slipped 0.3%, extending the cautious sentiment after a 6.3% plunge in a key semiconductor stocks gauge and declines across major Wall Street indices on Wednesday.
Markets found some relief as crude oil prices continued to ease. Brent crude fell 0.8% to $71 a barrel, its lowest level since the US and Israel carried out strikes on Iran in late February.
In early Asian trading, two-year US Treasury yields steadied, while gold held on to the gains recorded in the previous session.
Investor focus remains firmly on Federal Reserve Chairman Kevin Warsh, who said recent price risks have moderated while reaffirming the central bank's commitment to bringing inflation back to its 2% target, according to a Bloomberg report.
Wall Street today
US equities ended marginally lower on Wednesday as weakness in technology stocks weighed on sentiment, although gains in Meta Platforms helped cushion losses in the S&P 500 and Nasdaq.
Chipmakers led the decline, with the Philadelphia Semiconductor Index dropping 6.3%, while the technology sector emerged as the worst-performing segment of the S&P 500. Investor concerns over elevated valuations and heavy AI-related spending by technology companies continued to pressure the sector.
The Dow Jones Industrial Average slipped 13.96 points, or 0.03%, to close at 52,305.24. The S&P 500 declined 16.13 points, or 0.22%, to 7,483.23, while the Nasdaq Composite fell 173.69 points, or 0.66%, to end at 26,040.03.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
