The broader Asian equity gauge fell 0.6%, while South Korea’s tech-heavy Kospi dropped 1.8%. Japan’s Nikkei 255 was down 2.79%, while the broader Topix index fell 0.7%.
US stock futures were little changed in early Asian trade.
On Wall Street, the S&P 500 ended little changed after giving up early gains driven by Micron Technology’s strong revenue forecast. Apple shares tumbled 6.1% after the company announced price increases for Mac computers, iPads and home devices. The Nasdaq 100 still closed 0.8% higher, although it had risen as much as 2.1% earlier in the session.
Oil prices remained in focus after Brent crude rose on Thursday following a projectile strike on a vessel in the Strait of Hormuz, snapping a three-day losing streak. However, crude prices edged lower during early Asian trading.
Meanwhile, investors scaled back expectations of further US Federal Reserve rate hikes after the central bank’s preferred inflation gauge came in below forecasts. The personal consumption expenditures (PCE) price index rose 0.4% in May, below economists’ expectations of a 0.5% increase, while annual inflation accelerated to 4.1%, remaining well above the Fed’s 2% target.
Interest-rate futures reflected lower expectations of monetary tightening, with traders pricing in around 34 basis points of additional tightening by December, compared with 36 basis points a day earlier. The probability of a rate hike at the next policy meeting also eased.
Technology stocks remained under pressure as investors assessed whether elevated valuations, particularly among AI-linked companies, can be sustained.
While positive updates from Micron and Qualcomm provided support to chip stocks, concerns over AI spending and broader sector valuations continued to drive volatility.
With inputs from Bloomberg.
