Asian equities declined amid concern that valuations in some technology companies have become stretched after their relentless surge this year. The MSCI Asia Pacific Index dropped 0.8% with chip shares dragging Japan lower. Semiconductor Manufacturing International Corp. fell after reports that brokerages have cut the stock’s margin financing ratio to zero citing higher valuations. A gauge of tech shares in Hong Kong is set for its worst week since the start of August. South Korean shares rose upon return from a week-long holiday with Samsung Electronics Co. jumping 6%. The dollar edged lower after a four-day rally took it to the strongest since the beginning of August. A Bloomberg gauge of the greenback is set for its best weekly gain since mid-November 2024. Gold traded just below the $4,000 mark while oil held the biggest decline in a week on cautious optimism about easing tensions in the Middle East. Global shares were set for a second decline in three weeks as investors take a pause following a robust rebound from April’s lows, when tariff announcements shook markets. The surge in AI-focused technology companies has fueled a debate over whether prices are running ahead of fundamentals. Even after a series of records to all-time highs, stock positioning data from JPMorgan Chase & Co. suggested some investors including hedge funds are holding back. The equity beta of monthly reporting macro hedge funds — an indicator of their exposure — remains modestly negative despite becoming slightly less so in recent months, the team led by Nikolaos Panigirtzoglou said. One of the main reasons the AI bubble talk is misplaced is that the leading spenders continue to enjoy increased earnings power, according to Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team. Chip stocks in Asia, especially in Japan, had rallied earlier this month after companies such as Hitachi Ltd. and Fujitsu Ltd. formed alliances with OpenAI and Nvidia Corp. Chinese chip stocks are undergoing some profit-taking after the Golden Week holiday, said Kenny Ng, a strategist at China Everbright Securities International. “The margin financing adjustment also raised concerns about stretched valuations, adding pressure to the sector,” he said. In other corners of the market, Treasuries steadied after falling across the curve Thursday. The yen headed for its biggest weekly loss in a year even as Japan’s new ruling-party leader Sanae Takaichi, a pro-stimulus lawmaker, said she wasn’t in favor of an excessively weak currency. The Argentine peso rebounded after the US rushed to stabilize the country’s economy, offering $20 billion in financing and carrying out a rare intervention in currency markets after weeks of sharp declines. Investors are also focused on the recent strength of the dollar. The world’s primary reserve currency is around a two-month high, even as the US government shutdown drags on, and traders in Asia and Europe say hedge funds are adding options bets that the rebound versus most major peers will extend into year-end. US After Hours ESTC +9.1% on bullish guidance and buyback; APLD +14.2% higher on earnings; KIDS -14.3%, USNA -11.3%, LEVI -7.7% lower on earnings/guidance; BLS recalling staff to ready September CPI report, according to Bloomberg.
Nikkei -1.10% Hang Seng -1.14% CSI -1.25% Shanghai -0.51% Shenzen -1.11%
Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH
S&P +0.12% Nasdaq +0.16% EuroStoxx +0.07% FTSE -0.23% Dax +0.04% SMI -0.04%
Macro :
- US Launches Financial Rescue of Argentina, Treasury Buys Pesos
- Jane Street Muscles Into Physical Gas Market in Trading Push
- Microsoft Forecasts Show Data Center Crunch Persisting Into 2026
- Speculative AI Stock Wagers Amplify Valuation Risks: Macro View
- SEC Offers Relief for IPOs Stuck in Limbo During Shutdown
Keep an eye on :
Keep an eye on :
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- AAPL US : Apple to Shift Health, Fitness Divisions to Services in Shake-Up
- ARM US : SoftBank in Talks for $5 Billion Margin Loan Backed by Arm Stock
- ATRLJB SS : Atrium Ljungberg 3Q Rental Income Beats Estimates
- AZN LN : AstraZeneca Lifts Virginia Plant Spend to $4.5b
- Bitso : Mexican Unicorn Bitso Expands Beyond Crypto With Stock Trading
- BPE IM : BPER Banca: SREP Requirement Revised After Acquisition
- BPE IM : BPER Banca: SREP Requirement Revised After Acquisition
- BP/ LN : Venture Global Suffers Surprise Defeat in BP’s LNG Arbitration
- BYD 1211 HK : BYD confirms 2025 year-end production start at Hungarian plant
- CAP FP : WNS Acquisition by Capgemini Sanctioned by Royal Court of Jersey
- COFA FP : Allianz, AIG, Others Prepare for Wave of First Brands Claims: FT
- COLOB DC : Coloplast’s Rasmussen to Leave Board; Lego’s CEO to Enter
- DEMANT DC : Demant Chairman Niels Christiansen Won’t Stand For Re-election
- ESTC US : Elastic Shares Rally 10% After Announcing $500m Share Buyback
- EOAN GY : PSI Software Nears Takeover: Reuters
- FAST NA : Fastned Expands into Spain, Opening First Charging Stations
- F US : Ford Reverses Plan to Claim EV Tax Credits: Reuters
- GXI GY : Gerresheimer 3Q Adjusted Ebitda Margin Misses Estimates
- IDIA SW : Idorsia Raised CHF65.6M Through Placement of 16.4 Million Shares
- IG IM : Italgas to Proceed With Awarding Proccess for Divested Assets
- ISS DC : ISS Signs New Contract in Turkey With Annual Value of ~DKK100M
- JYSK DC : Jyske Raises FY Net Income Forecast; New Range Beats Estimates
- LEVI US : Levi Strauss 3Q Adjusted EPS Beats Estimates
- NRIX US : Nurix Therapeutics Slips After 3Q Loss per Share Disappoints
- PSAN GY : PSI Software Confirms Talks on Potential Takeover Offer
- RIO LN : Rio Tinto to Close Metal Powder Plant in Quebec in Coming Months
- SHEL LN : WA Regulator Okays Renewal of Shell’s Electricity Retail Licence
- SAX GY : Stroeer Shares Spike Briefly on Betaville ‘Uncooked Alert’
- SWK US : Runway Growth to Buy SWK for About $220m in Stock, Cash
- TCAP LN : TP ICAP Crypto Exchange to Add Stablecoin Pairs as Volume Jumps
- TRYG DC : Tryg 3Q Pretax Profit Beats Estimates (1)
- UMG NA : Universal Music Says Court Dismissed Drake’s Defamation Lawsuit
- VAR NO : Var Energi Prelim 3Q Avg Production Rises to 370,000 BOE/D
- WNS US : WNS Acquisition by Capgemini Sanctioned by Royal Court of Jersey