Stocks Decline Before CPI, Gold Drops on Fed Bets – Asia Market Wrap

Global equities extended their decline as technology shares remained under pressure and investors reduced risk ahead of a key US inflation report.

MSCI’s Asia Pacific equity gauge fell 2.5%, marking its fourth loss in five sessions. South Korea’s Kospi led regional declines, tumbling 6.3% as semiconductor stocks retreated following a powerful AI-driven rally that had previously made the benchmark one of the world’s best-performing indexes this year.

Nasdaq 100 futures fell 0.8% following a volatile session on Wall Street, while European equities were set for a weaker open. The continued pullback in technology shares weighed on broader market sentiment as investors reassessed AI-related valuations.

Gold dropped 2% to below $4,200/oz as expectations for higher inflation boosted the likelihood of further Fed tightening. Treasury yields moved higher, with the US 10-year yield rising 2 bps to 4.54%. Oil recovered part of Tuesday’s losses, with Brent crude trading around $92/bbl as geopolitical tensions resurfaced following US strikes on Iran.

Elsewhere, Bitcoin fell more than 1% to around $61,200, while Japanese government bond futures extended losses after a weak 30-year debt auction. The Dollar was supported by rising yields as traders positioned for the upcoming inflation data.