Asian shares fall as chipmakers drag; US jobs data looms
Asian shares fall as chipmakers drag; US jobs data looms
Asian shares fall as chipmakers drag; US jobs data looms
Asian equity markets extended their decline on Thursday, July 2, 2026, as investors rotated out of semiconductor stocks following a strong quarter.
The impact was most severe in South Korea, where the KOSPI sank 4.8%, continuing a 2% slide from Wednesday. This correction followed a second-quarter surge of 68% driven by soaring AI-related demand for memory chips. Samsung tumbled 7.2% and SK Hynix plunged 8.5%.
Fabien Yip, a market analyst at IG, attributed the plunge in Asian semiconductors to a hangover from Wall Street
, noting that profit-taking was a key driver. Yip also noted that Apple's reported outreach to restricted Chinese memory makers for devices intended for the China market introduces a pricing threat to Japanese and Korean incumbents.
While most regional indices struggled, Hong Kong's Hang Seng index bucked the trend with a gain of 0.9%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%.
US Economic Outlook and Rate Fears
Global currency and bond markets are currently bracing for U.S. Non-farm payrolls data, which is due on Thursday of this month. Economists polled by Reuters expect June to show a rise of 110,000 jobs, but forecasts vary widely from 25,000 to 200,000. The jobless rate is expected to remain steady at 4.3%.
Chris Weston, head of research at Pepperstone, stated that equity players are seeking a Goldilocks outcome
consisting of stable unemployment and respectable job creation. According to Weston, bulls would welcome any result that avoids increasing the implied probability of near-term rate hikes.
At the Sintra Forum, Federal Reserve Chair Kevin Warsh mentioned that inflation risks have eased recently. However, Warsh stated he would stick firmly to the 2% inflation target and would disappoint
those expecting loose monetary policy. Markets are currently pricing in approximately 80% odds of a rate hike in September.
Treasury yields rose as traders anticipated a potentially strong jobs number. U.S. 2-year yields rose 2 basis point (bp) on Thursday to 4.1806% and have increased 9 bps this week. 10-year yields climbed 2 bps to 4.4911%, marking a 12 bps increase for the week.
Commodities and Currency Shifts
Oil prices reached new four-month lows. Brent crude fell 1% to $70.88 a barrel after U.S. President Donald Trump stated that talks with Iran in Qatar went well and more oil tankers moved through the Strait of Hormuz.
In currency markets, the dollar slipped 0.1% to 162.39 yen, following a 40-year high of 162.84 reached on Wednesday. The euro remained steady at $1.1385 after European Central Bank President Christine Lagarde noted that growth and inflation risks are becoming more broadly balanced.
Gold increased 0.7% to $4,059 an ounce, following a 14% drop in the second quarter.
Global Market Reactions
Wall Street futures edged up 0.2% following the overnight semiconductor selloff. Meta Platforms jumped nearly 9% amid reports that the company is building a cloud business to sell excess AI computing capacity. European shares were expected to open steady.
