Oil Dips, Broadcom Miss, & Stocks Drop From Record – Asia Market Wrap

Global equities retreated from record highs as a disappointing forecast from Broadcom weighed on the AI-driven rally that has powered markets higher throughout the year. Asian stocks snapped a four-day advance, with MSCI’s regional benchmark falling 1.2%, while South Korea’s KOSPI — one of the strongest-performing equity gauges globally this year — declined 1%.

Futures pointed to further weakness on Wall Street after Broadcom shares plunged 14% in extended trading as investors reacted negatively to its outlook. Nasdaq 100 futures fell 0.5%, adding pressure to tech stocks following a softer session in the US.

The cautious tone followed losses on Wall Street, where the S&P 500 ended a nine-session winning streak. Risk sentiment was further undermined by renewed tensions involving the US and Iran, prompting investors to reduce exposure to risk assets. European equities were also set to open lower.

In digital assets, Bitcoin extended its decline, falling toward $64,000 and reaching its lowest level since February as investors moved away from higher-risk trades.

Energy markets provided a modest offset to broader risk concerns. Brent crude fell nearly 1% to around $97 a barrel after the US announced a ceasefire between Israel and Lebanon, helping halt a three-day advance in oil prices.

In foreign exchange markets, the Japanese Yen strengthened against the Dollar after reports suggested officials at the BoJ are considering a 25 bps interest rate increase this month, with the possibility of another hike later in the year. The prospect of tighter Japanese monetary policy supported the currency and added to broader moves across global markets.