Decline in Asian Stocks as the Dollar Fluctuates

Asian stock markets experienced a decline on Thursday as stocks in the chip sector followed the overnight declines of their Wall Street counterparts. In particular, Meta Platforms and other tech giants contributed to the uncertainty. Meta Platforms warned of rising costs due to artificial intelligence, which made investors nervous. Results from other tech giants like Apple and Amazon are expected later in the day. In addition to the tense situation in the stock markets, the political climate in Japan also impacted the markets. The yen edged closer to a three-month low against the dollar, partly explained by the recent setbacks of the Japanese ruling coalition in last weekend's parliamentary elections. Market participants do not expect an interest rate change from the Bank of Japan at their rate decision on Thursday. Nevertheless, attention remains focused on possible monetary policy changes. Globally, the dollar lost strength after continuing its recovery against major currencies on Wednesday. Traders are eagerly looking ahead to the upcoming monthly U.S. employment report on Friday, as well as the U.S. presidential election and the Federal Reserve's policy meeting next week. Meanwhile, gold marked a new record high. Regional tensions increased after North Korea tested an intercontinental ballistic missile. While the Hang Seng Index in Hong Kong saw slight gains, Chinese mainland indices declined. Taiwanese markets remained closed due to weather conditions. Markets were awaiting new impetus from Beijing, where a week-long congress is set to take place next week. Nasdaq futures pointed to a decline, as the Philadelphia SE Semiconductor Index recorded significant losses, led by a substantial drop in Advanced Micro Devices' stock. The U.S. Dollar Index stabilized, while the rate against the yen remained near a three-month high. Oil traders benefited from optimistic expectations regarding demand in the U.S., pushing up prices for Brent and West Texas Intermediate.