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Asian Stocks Slide as US Chip Selloff Deepens and Oil Prices Fall
Asian stocks slide as the US chip selloff deepens, while oil prices fall on signs of progress toward ending the Iran war.
Key points
- The MSCI Asia Pacific gauge dropped 0.4% and South Korea's Kospi Index slid almost 3% in early trade.
- A US gauge of chipmakers extended a three-day rout to 12%, and the Nasdaq 100 sank 10% from its peak.
- Brent crude slumped 7.6% to close at $104.77 a barrel as traders assessed signs of progress toward ending the conflict.
Why it matters. Lower oil and easing geopolitical tensions may reduce energy prices and inflation risks, but tech shares have not recovered as concerns over AI spending and stretched valuations persist.
Asian stocks opened lower on Tuesday as a selloff in US chipmakers deepened, with the MSCI Asia Pacific gauge down 0.4% and South Korea's Kospi Index sliding almost 3%. The US chip gauge extended a three-day rout to 12%, and the Nasdaq 100 fell 10% from its peak into a technical correction. Brent crude slumped 7.6% to close at $104.77 a barrel on signs of progress toward ending the Iran war, according to traders, a day before the US midterm elections.
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Asian Stocks Slide as US Chip Selloff Deepens and Oil Prices Fall
Asian stocks opened lower after a selloff in US chipmakers deepened, according to The Economic Times. The MSCI Asia Pacific gauge dropped 0.4 per cent, and South Korea's Kospi Index slid almost 3 per cent. In the United States, a gauge of chipmakers extended a three-day rout to 12 per cent. The Nasdaq 100 has sunk 10 per cent from its peak. The chip losses overshadowed a plunge in oil prices, which was driven by optimism over diplomatic progress toward ending the war in Iran. Markets in the region are closely tracking the technology sector's decline.