FX.co ★ Asian Shares Decline Amid Tech Losses

Asian markets saw a downturn on Thursday as disappointing industrial profit data from China and the yen's depreciation past 160 per dollar heightened concerns over potential government intervention. Technology stocks also retracted, influenced by U.S. chipmaker Micron Technology's third-quarter revenue surpassing expectations but coupled with a tepid earnings forecast.

The U.S. dollar reached a 38-year peak against the yen, accompanied by a rise in bond yields due to apprehensions ahead of a significant U.S. presidential debate in Atlanta and the release of PCE inflation data on Friday. Gold managed a slight uptick, trading above $2,300 per ounce after a two-day decline. Meanwhile, oil prices dipped in Asian trading following reports of a significant increase in U.S. stockpiles.

China's Shanghai Composite Index dropped 0.90% to 2,945.85, driven by a notable slowdown in industrial profit growth for May. Hong Kong's Hang Seng Index plummeted 2.06% to 17,716.47, primarily impacted by tech stocks.

In Japan, markets edged lower as investors stayed vigilant regarding possible government intervention in the currency market. Japanese Finance Minister Shunichi Suzuki emphasized today that authorities are closely monitoring the currency market and will act as needed to maintain stable exchange rates. Consequently, the Nikkei average decreased by 0.82% to 39,341.54, while the broader Topix index dropped 0.33% to 2,793.70. Technology stocks underperformed, with Tokyo Electron and Screen Holdings falling 2.4% and 5.7%, respectively. Investors largely overlooked data indicating a stronger-than-expected rise in Japan's retail sales for May.

In South Korea, Micron's earnings results contributed to a drop in Seoul stocks, with the Kospi average declining 0.29% to 2,784.06. However, gains in auto and shipbuilding stocks helped mitigate broader market losses, with Hyundai Motor jumping 2.9% and HD Korea Shipbuilding & Offshore Industries surging 4.7%.

Australian markets closed lower as rate-sensitive stocks fell amidst growing expectations of an interest rate hike by the Reserve Bank in August, due to an unexpected spike in inflation to a six-month high in May. The benchmark S&P/ASX 200 fell 0.30% to 7,759.60, led by declines in banking and real estate stocks. The broader All Ordinaries index ended 0.25% lower at 8,002.80. Across the Tasman, New Zealand's S&P/NZX 50 index dropped 0.99% to 11,717.43, breaking a two-day winning streak as government bond yields rose.

In the U.S., stocks initially struggled for direction overnight before ending slightly higher, as investors awaited key economic data and the Fed's annual banking sector stress test results. Data revealed that U.S. sales of new single-family homes had decreased to a six-month low in May, attributed to persistently high mortgage rates. The Nasdaq Composite gained 0.5%, while the S&P 500 edged up 0.2%, and the Dow finished marginally higher.