Following a comeback on Tuesday, selling in technology companies continued, causing the MSCI Asia Pacific Index to drop 0.5%. South Korea’s Kospi Index, a gauge of investments in AI, fell 1.7%. In Japan, the Nikkei also decreased.
Following the Wall Street benchmarks’ erratic session on Tuesday, which saw pressure on tech stocks, contracts for the S&P 500 and Nasdaq 100 indexes saw minimal movement. As investors continued to rotate out of tech companies, which have been the main driver of this year’s advance, the Nasdaq 100 dropped 1.1%.
As the strikes jeopardised the precarious ceasefire and attempts to reach an agreement to reopen the Strait of Hormuz, the dollar—the preferred safe haven since the beginning of the Middle East conflict—grew stronger versus all of its Group of 10 peers.
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Nine of the 11 sectors that make up the S&P 500 saw gains on Tuesday, although Wall Street’s decline in technology shares was accompanied by a wider surge in the rest of the market. Real estate increased by 2.1%, health care increased by 1.3%, and utilities increased by 1.1%, with defensive corners leading the gains. The only industries to fall were energy and technology.
In other areas of the market, the yen was close to its lowest point since April, which made traders wary of potential Japanese government assistance for the currency. Gold fell 1% to roughly $4,220 per ounce.
Now, focus shifts to the US inflation report on Wednesday. Strong US jobs data this week has raised predictions that the Fed will have to hike interest rates, even though oil has fallen from multiyear highs set in April.
(Edited by : Juviraj Anchil)
