Asian Markets Hit by Tech and Luxury Slowdown
Asian equities tumbled on Wednesday following disappointing earnings from European tech giant ASML and French luxury firm LVMH. These underwhelming results shook investor confidence, with key Asian stock indices in the red.
South Korea's tech-heavy index fell 0.6%, while Japan's Nikkei dropped 1.8%, led by chip stocks. Taiwan's stocks slipped 1.2%, contributing to a 0.32% decline in MSCI’s broadest index of Asia-Pacific shares outside Japan.
ASML Earnings Disappoint, Chip Stocks Hit Globally
ASML, a major supplier to chipmakers like TSMC, Intel, and Samsung, reported lower-than-expected sales forecasts for 2025. Despite a boom in AI-related chips, other semiconductor sectors remain weak, causing customer caution.
“The ASML numbers were not good, signaling broader issues in the semiconductor market outside of AI,” said Nick Ferres, CIO at Vantage Point Asset Management.
China’s Luxury Demand Falters
French luxury brand LVMH also reported declining demand in China, further dampening optimism around China’s stimulus measures. Investors are now closely watching China’s upcoming announcement on property sector policies, hoping for more robust action to stabilize growth.
U.S. Dollar Strengthens on Fed Rate Expectations
In the U.S., shifting expectations regarding the Federal Reserve's interest rate cuts have buoyed the dollar. The U.S. dollar index hovered near its highest levels since August, driven by speculation of a 25 basis point rate cut in the coming months.
Oil Prices Steady Amid Middle East Uncertainty
Oil prices remained steady after recent declines, with Brent crude rising 0.4% to $74.56 per barrel, and U.S. West Texas Intermediate up 0.5% at $70.93, as markets remained uncertain about Middle East tensions and global supply risks.


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