Asian stocks track US decline for a second day: Markets wrap
economic weakness overwhelmed the market’s optimism surrounding interest-rate cuts.
Shares in Japan, South Korea and Australia dropped. The S&P 500 fell 0.8% Thursday, extending a drop from the prior session and placing the benchmark on track for its largest weekly decline since April.
The Nasdaq 100 fell 0.5%, while the Russell 2000 benchmark of US small companies fell 1.9%, continuing to pull back from a rally earlier in the week as investors rotated from large technology stocks. US equity futures edged higher early Friday.
A rout in chip stocks on signs the US would impose fresh restrictions on sales to China also began to abate. An index of such firms that includes Nvidia Corp. and Advanced Micro Devices Inc. rose 1.7%, easing its 6.8% drop the prior day. Broadcom Inc. closed higher on a report it has discussed making a chip for OpenAI. Taiwan Semiconductor Manufacturing Co.’s US-listed shares rose on a stronger revenue outlook.
Treasury 10-year yields rose four basis points to 4.20% Thursday. Australian yields echoed the move early Friday while those for New Zealand were little changed.
The yen was slightly firmer against the greenback after a Thursday decline. Japan inflation data for June came in softer than estimated. An index of the dollar was little changed early Friday after strengthening in the prior session.
US initial jobless claims data on Thursday showed the biggest increase since early May in a sign of cooling in the labor market that supports expectations the Federal Reserve will soon cut
