(Bloomberg) — Stocks in Asia slipped on Wednesday, tracking a US selloff, as investors weighed if the artificial intelligence rally that’s powered the bull market recently still has room to run.
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Equity benchmarks in Sydney, Tokyo and Seoul all fell. Chinese mainland stocks slipped as much as 1.3%, bringing losses since an Oct. 8 high to more than 10%, as optimism faded that Beijing’s support could help the struggling economy to turnaround. S&P 500 futures were little changed while Treasuries were also steady in Asia.
A broader weakness in the semiconductor sector was highlighted on Wednesday as Asian chip stocks including SK Hynix Inc. and Samsung Electronics Co Ltd declined. The moves partly reflected a slide in Dutch giant ASML Holding NV’s shares on Tuesday after it cut its 2025 outlook. In the US, Nvidia Corp. lost 4.7%, signaling a slowdown for some of the biggest bellwethers of the industry.
“The European tech pullback spill-over on to Wall St is inevitably set to drag Asia,” said Vishnu Varathan, the Asia head of economics and strategy for Mizuho Bank Ltd. in Singapore. “Optimism on Chinese stimulus appears to have been dulled at the margin, so much so that markets have taken more profits, rather than a bullish position, on Chinese equities.”
China’s housing minister is planning to hold a press briefing on Thursday, likely providing more details of measures to support the property sector and bolster economic growth. Minister Ni Hong will be the latest senior economic official to speak in public about the government’s pivot toward stabilizing growth.
In the US, The S&P 500 slipped to around 5,815 and the Nasdaq 100 lost 1.4%. The dollar steadied after climbing to its highest level in about two months after former President Donald Trump defended proposals to dramatically raise tariffs on foreign imports. Separately, Fed Bank of Atlanta President Raphael Bostic said he expects the US economy to slow this year but to remain robust, adding that the downward path for inflation could see some bumps.
Back in Asia, New Zealand’s dollar and sovereign bond yields fell after the annual inflation rate declined sharply in the third quarter, returning to the central bank’s target band for the first time in more than three years.
Meanwhile, three of Southeast Asia’s biggest economies will unveil monetary policy decisions later Wednesday. Indonesia and Thailand are expected to keep rates on hold, while a cut is seen in the Philippines.
Oil Gains
Oil climbed — after falling by more than 4% on Tuesday — as Israel said it would make its own decision on how to attack Iran, keeping open the possibility that energy infrastructure may be targeted.
Crude has had a roller-coaster ride this month, with prices buffeted by tensions in the Middle East, as well as China’s efforts to revive growth in the largest importer. Traders have also been weighing the market’s outlook into next year, with the International Energy Agency flagging prospects for a global glut.
“It looks like dealers simply have their machines tied to oil futures these days,” said Christoph Rieger, head of rates and credit research at Commerzbank AG. “Whether it makes sense to adjust your long-term inflation view on the back of this is a different question.”
Key events this week:
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Morgan Stanley earnings, Wednesday
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ECB rate decision, Thursday
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US retail sales, jobless claims, industrial production, Thursday
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Fed’s Austan Goolsbee speaks, Thursday
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China GDP, Friday
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US housing starts, Friday
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Fed’s Christopher Waller, Neel Kashkari speak, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures were little changed as of 10:46 a.m. Tokyo time
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Nikkei 225 futures (OSE) fell 1.7%
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Japan’s Topix fell 0.9%
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Australia’s S&P/ASX 200 fell 0.2%
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Hong Kong’s Hang Seng rose 0.5%
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The Shanghai Composite was little changed
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Euro Stoxx 50 futures fell 0.5%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0890
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The Japanese yen was little changed at 149.06 per dollar
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The offshore yuan was little changed at 7.1290 per dollar
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The Australian dollar fell 0.2% to $0.6688
Cryptocurrencies
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Bitcoin rose 1% to $67,172.85
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Ether rose 1.6% to $2,612.92
Bonds
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The yield on 10-year Treasuries was little changed at 4.03%
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Japan’s 10-year yield declined two basis points to 0.950%
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Australia’s 10-year yield declined six basis points to 4.20%
Commodities
This story was produced with the assistance of Bloomberg Automation.
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