ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian stock markets declined sharply on Thursday as investors moved away from technology and semiconductor stocks following recent gains, while ongoing uncertainty surrounding the U.S.-Iran conflict dampened market sentiment across the region.
Regional equities followed Wall Street lower after U.S. markets retreated from record highs overnight. Investor caution increased amid concerns about escalating tensions in the Middle East, prompting profit-taking in high-growth sectors. S&P 500 Futures fell 0.4% in after-hours trading, while semiconductor stocks weakened significantly after Broadcom released mixed quarterly earnings results and maintained its current AI revenue outlook.
The negative reaction to Broadcom’s earnings weighed heavily on Asian technology shares, particularly in markets with strong semiconductor exposure. South Korea’s KOSPI was among the worst-performing indexes, pressured by declines in major chipmakers.
Japan’s Nikkei 225 dropped 1.9%, while the broader TOPIX index fell 1.4%. Market sentiment was affected by comments from Bank of Japan Governor Kazuo Ueda, who indicated that policymakers must carefully assess the possibility of future interest rate hikes as inflation risks continue to rise. Ueda highlighted concerns that higher energy prices linked to the Iran conflict could push inflation above the central bank’s target. Investors interpreted the remarks as a sign that tighter monetary policy could be discussed at the BOJ’s upcoming meeting.
Japanese technology stocks also faced selling pressure after a strong rally had recently pushed the Nikkei to record highs. SoftBank Group was among the biggest losers, plunging nearly 11%.
South Korea’s KOSPI slid as much as 2%, with Samsung Electronics and SK Hynix falling between 2% and 4% as traders locked in profits from recent record highs. The decline mirrored Broadcom’s sharp drop in U.S. after-hours trading.
Elsewhere, Australia’s ASX 200 fell 1.4%, Singapore’s Straits Times Index lost 1.2%, and Hong Kong’s Hang Seng Index dropped 1.2%, led by weakness in technology shares. China’s Shanghai Composite and CSI 300 indexes posted more moderate losses, supported by continued strength in domestic semiconductor stocks driven by optimism surrounding artificial intelligence development and expectations of major index rebalancing.
Meanwhile, futures linked to India’s Nifty 50 remained largely unchanged after the benchmark recently touched its lowest level in nearly two months. Investors continue to closely monitor geopolitical developments, central bank signals, and semiconductor sector performance for clues on the direction of Asian markets in the coming weeks.
