Asian Stocks Fall & Yen Approaches 159 on Radar – Asia Market Wrap

After technology equities pulled the S&P 500 lower overnight, Asian stocks declined. After a six-day decline that increased the likelihood of intervention, the yen was the focus of attention.

The Hang Seng Index, which dropped as much as 2%, was the main cause of the MSCI Asia Pacific Index’s second session of fall. Amidst Beijing’s hesitancy to increase stimulus, mainland indicators also declined. For the fifth consecutive week, the dollar is expected to increase. As traders prepared for the triple-witching derivatives expiry day, US stock futures remained stable.

The weakness comes as the S&P 500 briefly topped 5,500 on Thursday before losing traction, while the high-flying tech group powering the bull run came under pressure. The Nasdaq 100 slipped after a seven-day advance, with Nvidia and Apple leading losses in megacaps.

The government’s decision to raise levies related to renewable energy resulted in an acceleration of inflation in Japan, which supports the BoJ’s argument to consider hiking interest rates in the upcoming months. At their meeting a week ago, policymakers kept them unaltered and refused to provide specifics on reducing bond purchases.