Stocks Fall as Dollar Rises & Tech Rebound Stalls – Asia Market Wrap
Stocks retreated as the rebound in semiconductor and technology shares lost momentum, reviving concerns over the sustainability of the AI-driven rally. The Dollar strengthened, while Asian equities slipped 0.3%, led lower by a 0.7% decline in the region’s semiconductor sector.
South Korea’s Kospi fell 1.4%, with Samsung Electronics and SK Hynix both declining despite reports the government is considering establishing an investment fund financed by excess semiconductor tax revenue to support the industry’s long-term growth.
Wall Street equity futures pared Friday’s gains following the US holiday, while European equity futures pointed to a weaker open after the Stoxx 600 closed at a record high last week.
Brent crude declined as shipping through the US-protected corridor in the Strait of Hormuz continued to recover, easing immediate supply concerns. Meanwhile, OPEC+ members backed another modest increase in collective output quotas for next month, adding to expectations of higher supply.
Gold traded little changed around $4,175/oz after a three-day rally, supported by speculation the Fed is unlikely to raise interest rates anytime soon.
