- The Asian semiconductor sector has experienced a significant valuation correction, with the combined market value of South Korea's Samsung Electronics and SK Hynix evaporating by $290 billion, dragging down the Korea Composite Index by 7.9%. This is mainly due to profit-taking sentiment in US tech stocks and potential changes in Apple's supply chain.
- The market is focused on the upcoming US June non-farm employment report. Economists expect an increase of 110,000 jobs, with the unemployment rate remaining at 4.3%. This data will provide crucial guidance for the monetary policy path following a speech by Federal Reserve Chairman Kevin Walsh.
- Global cross-asset markets are currently experiencing volatility. The yen appreciated by 0.9% against the dollar to 161.15 amid intervention speculation, the 10-year US Treasury yield rose to 4.492%, while Brent crude fell by 1.4% to $70.50 per barrel due to progress in US-Iran talks and increased supply.
Valuation Reversal in Asia-Pacific Semiconductors
Affected by the chain reaction of a 6% drop in the US semiconductor sector overnight, Asian AI chip stocks faced concentrated profit-taking at the start of the third quarter. Samsung Electronics' stock price fell by 9%, and SK Hynix dropped by 14%, leading to an overall 7.9% decline in the Korea Composite Stock Price Index.
Labor Report Tests Rate Hike Expectations
Investors are watching the upcoming US June non-farm employment report. After a speech by Federal Reserve Chairman Kevin Walsh, market speculation about rate hikes within the year has cooled.
Forex Market Volatility and Intervention Speculation
Ahead of key data releases, the dollar index edged lower. On Thursday's European morning session, the dollar fell by 0.9% against the yen to 161.15. This movement has heightened market speculation about potential intervention by Japanese authorities.
Bond Market Rises and Commodity Divergence
With economic data remaining robust, US Treasury yields climbed, with the 10-year yield rising by 1.8 basis points to 4.492%, and the 10-year German bond yield also increased by 2.2 basis points to 2.898%.
