Asian Stocks Slip, Gold Gains!
Asian stocks weakened for the second straight day after Wall Street again dumped technology stocks and rotated into broader sectors outside of tech. At the opening of trading, the MSCI Asia Pacific Index fell around 0.3%, with pressure being felt most strongly in South Korea.
South Korea's Kospi led the decline with a decline of around 1.6%, despite this index previously being one of the "poster children" of the AI/technology investment theme in the region. Investors are becoming sensitive to tech valuations, which are considered overpriced and high capital expenditures.
This negative sentiment came after the Nasdaq 100 experienced its worst two-day run since October and broke through its 100-day moving average, a technical level often read as a risk signal for further corrections. However, US index futures briefly rose around 0.3% in the Asian session, signaling that selling pressure may be starting to ease.
Meanwhile, gold and silver actually strengthened, extending their rebound after historic plunges. Gold is trading just above $5,000/ounce, while silver is hovering around $89/ounce—signaling continued interest in precious metals while the stock market is wobbly.
Pressure in tech is also amplified by the market's response to updates from major tech companies: concerns about valuations, heavy spending on AI, and the potential for AI to erode established software business models. Several reports/outlooks from chip and software companies have also clouded sentiment in the sector.
Meanwhile, in energy commodities, oil weakened after an earlier rally, as Iran confirmed negotiations with the US would be held in Oman on Friday, somewhat alleviating fears of a near-term military escalation. Reuters noted that WTI had fallen about 1% ahead of the talks. (asd)
Source: Newsmaker.id
