SYDNEY, June 26: Asian shares retreated after a stellar quarter, influenced by Apple's significant price hikes. This adjustment revealed vulnerabilities in chip demand amid a robust tech earnings season.
Oil prices dipped as Brent crude futures fell 1.9% to $73.9 a barrel, following Saudi Aramco's resumption of oil loading at Ras Tanura. Ongoing geopolitical tensions saw more oil tankers navigating the Strait of Hormuz under military protection.
Nasdaq futures dropped 1.7% as speculation arose regarding OpenAI's potential delay of its public listing. European markets braced for a softer opening with stock futures down 1%.
Apple's share price sank 6.1% after announcing price hikes for iPads and MacBooks due to increased component costs, erasing approximately $250 billion in market value. Concurrently, Microsoft increased Xbox prices by up to $150 globally.
This price adjustment dampened enthusiasm following a positive earnings report from Micron, which saw its shares surge almost 16%. Analyst Charu Chanana noted that higher component costs could pose broader challenges for tech companies, prompting a more cautious market outlook.
The MSCI Asia-Pacific Index fell 3.8%, marking a weekly loss of 5.4% after a record run. The Nikkei index dropped 5%, while South Korea's KOSPI experienced an 8.2% decline, activating a trading halt. Chinese blue chips and Hong Kong's Hang Seng fell 2.9% and 2.4%, respectively.
In currency markets, the yen was near a 40-year low against the dollar, prompting concerns of Japanese intervention as it hovered around 161.73. This came despite stable U.S. inflation signals and slower growth in consumer spending impacting investor confidence.
Treasury yields remained stable, while precious metals suffered notable declines-gold down 12% and silver down 25%.