Asian stock markets fell on Thursday as the technology sector came under pressure. The price losses in the chip industry were based on the downward movements of their Wall Street counterparts. Meta Platforms, the parent company of Facebook, warned of rising costs in the area of artificial intelligence, which further caused nervousness. More major corporate announcements from Apple and Amazon are expected later today that could further impact the technology market. Political unrest in Japan, sparked by a loss of confidence in the ruling coalition after general elections, continued to depress the yen. This could delay monetary policy normalization efforts. The Bank of Japan will announce a rate decision on Thursday, with markets largely expecting the rate to remain unchanged. The dollar was weaker overall after retreating from a near three-month high. Market participants are concerned about the coming days, which include US jobs data, the presidential election and a decision from the Federal Reserve. Japan’s Nikkei fell 0.5% while South Korea’s Kospi fell 1.3%. North Korea raised regional tensions by testing an intercontinental ballistic missile. Hong Kong’s Hang Seng gained 0.2%, but Chinese blue chips lost 0.7%. Further impulses are expected from Beijing next week when the week-long congress begins there. Nasdaq futures came under pressure, signaling a 0.45% decline after the index fell 0.56% overnight. The Philadelphia SE semiconductor index was particularly hit, falling by 3.35%. Advanced Micro Devices fell over 10% after disappointing forecasts. The dollar index was steady at 104.15 after falling from an interim high. The yen remained near its weekly high against the dollar. A spokesman for Mizuho Securities pointed to the “chaotic political situation” in Japan, which plays into the hands of speculators. If further mixed data comes from the USA, this could further fuel currency volatility.
