Asian markets today: Asian markets declined on Friday, 5 June, while US equity index futures also traded lower, as enthusiasm surrounding the AI-driven rally cooled after helping propel global markets to record highs earlier this year.
South Korean stocks leading the regional decline after a sharp overnight sell-off in US technology stocks.
South Korea’s Kospi index tumbled 5.7%, led by steep losses in major technology stocks. Shares of Samsung Electronics and SK Hynix fell around 6% and 8%, respectively, while the small-cap Kosdaq index dropped 2.41%.
Japan’s Nikkei 225 also slipped 1.1% on Friday. Australia’s S&P/ASX 200 edged lower, declining 0.2%.
Meanwhile, Hong Kong’s Hang Seng index futures were trading at 25,158, below the benchmark’s previous close of 25,253.40 on Thursday.
Back home, Gift Nifty was trading near the 23,495 mark, about 17 points below the previous close of Nifty futures, signaling a subdued opening for the Indian equity benchmarks.
“Asian markets are trading sharply lower, reflecting a cautious global risk sentiment after the recent AI-led rally lost momentum. Japan’s Nikkei 225 fell by over 1.5%, while South Korea’s KOSPI declined nearly 6%. The weakness across Asian markets is likely to influence sentiment in emerging markets, including India,” said Ponmudi R, CEO of Enrich Money.
Why are Asian markets falling today?
Nasdaq 100 futures fell more than 1%, signaling a potential third straight session of declines for the technology-focused index. The previous day, investors shifted away from tech shares into a wider range of sectors, helping the Dow Jones Industrial Average climb to a fresh record high.
In commodities, Brent crude stabilized near $95 per barrel on Friday after retreating in the prior session. The decline came as markets grew optimistic about a possible diplomatic breakthrough between the US and Iran following a conditional ceasefire between Israel and Lebanon. Treasury yields were largely unchanged, while Bitcoin gained modestly to trade around $63,700.
The sharp recovery in semiconductor stocks from their conflict-driven lows lost momentum after Broadcom Inc.’s forecast for AI chip sales failed to meet lofty market expectations. Attention now turns to Friday’s US jobs report, a key event that could influence expectations for Federal Reserve policy and determine whether the AI-led market rally broadens or begins to fade.
On the geopolitical front, President Donald Trump said ceasefire negotiations had entered their “final” phase, although Iran’s foreign minister earlier indicated that talks had stalled. Tensions escalated on Wednesday when Iran launched missiles and drones at Kuwait and Bahrain, resulting in one death and dozens of injuries at Kuwait’s main airport, after the US targeted an oil tanker bound for Iran.
Meanwhile, in Lebanon, Hezbollah stated that it would not comply with the terms of a ceasefire announced by the US State Department just hours earlier.
Across Asia, investors are closely monitoring currency markets after the South Korean won weakened to its lowest level since 2009, highlighting the growing strain on regional currencies as the conflict involving Iran continues.
US stock market today
In the US markets overnight, the Dow Jones Industrial Average surged to a new record high, while the Nasdaq Composite lagged as investors shifted away from semiconductor stocks and into non-technology sectors.
The 30-stock Dow climbed 874.86 points, or 1.73%, to finish at an all-time closing high of 51,561.93. In contrast, the Nasdaq slipped 0.09% to 26,830.96, whereas the S&P 500 advanced 0.41% to end the session at 7,584.31.
(With inputs from agencies)
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