On Chips & Stocks Pull Back from Record, Gold Climbs – Asia Market Wrap

Global stocks slipped from record highs amid weakness in chipmakers, while gold advanced to its strongest level since June.

The MSCI All Country World Index snapped a five-day gain to fall 0.2% as semiconductor shares in Asia and the US retreated, underscoring investor caution toward the sector. A key gauge of Asian shares dropped 1.2%, though sentiment steadied with futures for the S&P 500 and European equities edging higher.

Sandisk slid 8% in post-market trading, while rival Western Digital plunged 12% after both companies reported earnings. The semiconductor sector was the focus in Asia as the Kospi, a bellwether for the AI trade, fell 4.5% with SK Hynix and Samsung leading losses, while Kioxia tumbled 9% in Tokyo. Investors will get a fresh read of the AI trade when SoftBank reports earnings later Thursday. Attention is also on the $101 billion of SpaceX shares becoming available for trading.

Gold rose 0.4% to $4,260 an ounce on expectations that a reopening of the Strait of Hormuz and lower oil prices would ease pressure on the Fed to raise rates, which typically lessens the appeal of non-yielding bullion. Brent fell 0.4% to about $79.10 a barrel after Iran said it had reached an agreement with Oman on a proposed shipping route through the strait, a potential step toward reopening the waterway.