Key Takeaways

• Broad regional retreat: Asian markets fell as tech and chip stocks gave back recent gains amid Iran uncertainty and Broadcom’s post-earnings slump.
• Broadcom crashes 12%: The chip designer’s mixed earnings and unchanged AI guidance disappointed markets, with losses spilling across Asia.
• Nikkei drops 1.9%: Japan’s index slumped after BOJ Governor Ueda warned of rising inflation risks and said rate hike pros and cons must be discussed.
• BOJ rate hike signal: Ueda cited Iran war energy shock as a potential inflation overshoot risk — pointing to increasing likelihood of a hike at the BOJ’s meeting later this month.
• SoftBank biggest Nikkei drag: Shares plunged nearly 11%.
• TOPIX sheds 1.4%: Broader Japanese losses reflected both chip weakness and BOJ hawkishness.
• KOSPI slides 2%: Samsung fell 2-4% and SK Hynix retreated after recent record highs as traders locked in profits.
• S&P 500 futures fall 0.4%: Wall Street retreated from record highs on Iran uncertainty and profit-taking.
• Iran talks still murky: Iranian media reports said Tehran halted indirect communications with Washington, keeping markets risk-averse.
• ASX 200 drops 1.4%: Australia’s index fell alongside broader Asia.
• Singapore Straits Times loses 1.2%: Regional risk-off mood hits the city-state.
• China relatively resilient: CSI 300 and Shanghai Composite fell 0.2-0.4%, cushioned by a domestic chip rally on AI optimism and index reshuffling anticipation.
• Hang Seng falls 1.2%: Hong Kong tech shares came under pressure.
• India flat: Nifty 50 futures steadied after the index hit a near two-month low.

Asian stocks fell on Thursday as technology and chipmaking stocks retreated from recent gains, while persistent doubts over a U.S.-Iran peace deal kept markets broadly risk-averse.

Regional markets took a negative lead-in from Wall Street, which fell from record highs overnight as uncertainty over Iran spurred some profit-taking.

S&P 500 futures fell 0.4% afterhours, with chip stocks tracking deep losses in Broadcom after the chip designer posted mixed earnings and guidance.

Losses in Broadcom also spilled over into Asian markets, with the chip-heavy KOSPI among the worst performers in the region.

Nikkei Sinks as BOJ Says It Will Discuss Interest Rate Hikes

Japan’s Nikkei 225 index fell 1.9%, while the TOPIX index shed 1.4% on Thursday.

Losses in local stocks came after Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank must discuss the pros and cons of raising interest rates in the face of rising inflationary risks.

Speaking at a seminar, Ueda warned that inflation could overshoot targets on the energy shock from the Iran war. While he did not explicitly signal any rate hikes, his comments pointed to the increasing possibility of a rate hike when the BOJ meets later in the month.

Japanese markets were also pressured by losses in tech and chipmaking stocks, after a strong run-up in the sector pushed the Nikkei to record highs this week.

SoftBank Group Corp. was the biggest weight on the Nikkei, down nearly 11%.

South Korea’s KOSPI Slides on Chip Losses

South Korea’s KOSPI index was also a major underperformer, losing as much as 2% on deep losses in chipmaking stocks.

Majors such as Samsung Electronics Co Ltd and SK Hynix Inc fell between 2% and 4% after hitting a series of record highs, as traders locked in recent profits.

Mixed earnings and guidance from Broadcom — which slid 12% in U.S. aftermarket trade — also weighed on the sector, after the chip designer posted disappointing quarterly revenue and maintained its AI sales guidance for the current quarter.

Broader Asia Retreats

Broader Asian markets largely retreated amid persistent concerns over the U.S.-Iran war, especially following a flare-up in hostilities over the past week. The status of U.S.-Iran negotiations remained unclear after Iranian media reports said Tehran had halted indirect communications with Washington.

Australia’s ASX 200 fell 1.4%, while Singapore’s Straits Times Index lost 1.2%.

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell between 0.2% and 0.4%, although bigger losses were limited by an extended rally in local chipmaking stocks. Optimism over China’s AI progress and anticipation of a major index reshuffling spurred strong gains in local chip names, which are expected to benefit greatly from the reshuffling.

Hong Kong’s Hang Seng index fell 1.2%, also pressured by losses in tech shares.

Futures for India’s Nifty 50 index were flat, after the Nifty slid to a near two-month low.