Precise Investors Editorial Team
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier gains and were last down 0.5% as the rally in chipmakers faltered
Asian shares wobbled on Thursday as a rally in semiconductors lost momentum, while oil prices surged as a resumption of hostilities in the Gulf reignited inflation fears and hammered bonds.
Oil prices gained for a third straight session as Iran and U.S. attacked each other.
Brent crude futures increased 1% to $78.85 a barrel and were up 9% this week to cross above $80 a barrel for the first time since June 22.
Chip company Nvidia rallied 3.6% after media reports that China plans to allow its top AI firms to buy a limited number of the company’s H200 chips.
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier gains and were last down 0.5% as the rally in chipmakers faltered, while Nikkei jumped 1.3% to break a three-day losing streak.
KOSPI rallied as much as 4% before turning 1% lower as gains in Samsung and SK Hynix faded.
At this stage, the market still appears skewed towards the view that the Iran conflict ultimately de-escalates, and negotiations resume around the memorandum of understanding, said Chris Weston, head of research at Pepperstone.
Nevertheless, traders understand the need to remain open-minded. The situation remains highly fluid, and conviction around timing is exceptionally difficult, he said.
The international bond rout deepened in Asia. The yield on 10-year Japanese government bonds hit 2.9%, the highest since 1996, while Australia’s 10-year government bond yields scaled a one-month high of 4.933%.
Elsewhere, European bourses looked set for a higher open, with stock futures up 1%. U.S. stock futures were around 0.2% higher.
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