Key Takeaways

• Broad sell-off: Japan’s Nikkei fell 1.5%, TOPIX slipped 1.7%, KOSPI dropped 2.5%+, and Hang Seng declined 1.1%.
• Samsung collapses: Shares reversed early gains to fall more than 4% after labor negotiations broke down.
• Strike confirmed: Samsung’s union said it will go ahead with its planned strike starting Thursday, May 21.
• Wall Street’s third loss: Tech and semiconductor shares led U.S. markets lower for a third consecutive session.
• Nvidia the main event: The AI chip giant reports Q1 earnings later Wednesday in a pivotal test for the AI rally.
• Stretched valuations worry: Some investors fear expectations have become too elevated after the stock’s sharp run-up.
• Bond yields weigh: Higher global yields are pressuring growth and technology stocks.
• Oil holds above $110: Crude remains elevated despite easing after Trump postponed the Iran strike.
• Iran threat remains: Trump warned the U.S. could still attack if diplomacy fails.
• Fed minutes ahead: Markets await the April FOMC minutes for clues on the interest rate path.
• China holds LPR: The People’s Bank of China kept one-year LPR at 3.00% and five-year at 3.50% — the 12th straight hold.
• China markets edge lower: Shanghai Composite fell 0.5%, CSI 300 dipped 0.4%.
• ASX and Singapore slip: Australia’s ASX 200 fell 1.2%, Singapore’s Straits Times lost 0.8%.
• India cautious: Nifty 50 futures fell 0.5%.

Asian stocks fell in broad-based selling on Wednesday, with technology shares tracking overnight losses on Wall Street as investors turned cautious ahead of chip giant Nvidia’s quarterly earnings later in the day.

Wall Street’s main indexes ended lower for a third straight session on Tuesday, with technology and semiconductor shares leading declines.

U.S. stock futures were little changed during Asian hours.

KOSPI Leads Losses After Samsung Talks with Union Fall Apart

Japan’s Nikkei 225 fell 1.5%, while the broader TOPIX index slipped 1.7%.

South Korea’s KOSPI dropped more than 2.5%. Samsung stock reversed early gains and fell more than 4% after the company said negotiations with the union broke down due to unresolved gaps on a few remaining issues.

Yonhap news agency reported that the Samsung union said it will go on strike starting Thursday, May 21, as planned.

Higher global bond yields weighed heavily on growth and technology stocks, particularly semiconductor companies that had driven much of this year’s artificial intelligence-led rally.

Investors are now awaiting Nvidia’s first-quarter earnings report — due later on Wednesday — for fresh clues on the sustainability of AI spending momentum. Some investors worry expectations have become stretched after the stock’s sharp rally this year.

Iran Tensions Linger

Oil prices remained elevated above $110 per barrel despite easing slightly after U.S. President Donald Trump said Washington had postponed a planned military strike on Iran.

Trump later warned the United States could still attack Iran if diplomatic efforts fail, keeping geopolitical tensions and inflation concerns firmly in focus.

Markets are also awaiting minutes from the Fed’s April policy meeting later on Wednesday for additional guidance on the outlook for U.S. interest rates.

China Keeps LPR Steady for 12th Straight Month

China kept its benchmark lending rates unchanged for a 12th straight month on Wednesday, as authorities balanced the need to support weak domestic demand against rising inflation risks linked to higher global energy prices.

The People’s Bank of China left the one-year loan prime rate (LPR) at 3.00% and the five-year LPR at 3.50%, in line with market expectations.

The decision offered little support to mainland Chinese markets, with investors remaining concerned about sluggish credit demand and the prolonged property downturn.

China’s Shanghai Composite index edged 0.5% lower, while the blue-chip Shanghai Shenzhen CSI 300 dipped 0.4%.

Hong Kong’s Hang Seng index declined 1.1%.

Elsewhere, Australia’s S&P/ASX 200 slipped 1.2%, while Singapore’s Straits Times Index fell 0.8%.

Futures tied to India’s Nifty 50 fell 0.5%.