Stocks stumble, oil set for weekly gain on renewed Gulf hostilities
Stocks stumbled on Friday as the drag from chipmakers weighed on global equity indexes. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.06% in early Asia trade, while the Nikkei slid 2.8%. Nasdaq futures lost 0.7%, S&P 500 futures declined 0.4%, and EUROSTOXX 50 futures were down 0.5%.
Oil prices were set for their sharpest weekly rise in three months as tensions in the Middle East erupted anew. Brent crude futures were up 0.7% to $84.83 a barrel, while U.S. crude advanced 0.7% to $79.49 per barrel. The U.S. began conducting a new wave of strikes against Iran on Thursday. Investors rotated out of semiconductor plays into other sectors, such as banking, after robust earnings from major lenders. Analysts at HSBC stated, "Asia's AI trade thesis is being tested again. After a strong rally so far this year - led by semiconductors - concerns have resurfaced about potential overcapacity in the AI build-up." Markets in South Korea were closed for a holiday after the government on Thursday announced it will temporarily ban new listings of exchange-traded funds (ETFs) tied to certain major technology firms.
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Asian stocks faced a challenging Friday as chipmaker performance impacted global equity indexes, while oil prices saw a significant weekly increase.
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