- Asian stocks declined amid tech selloff and Middle East tensions after US strike on Iran
- South Korea's Kospi fell 1.7%, Japan's Nikkei also dropped, and S&P 500 futures slipped 0.2%
- Brent crude oil rose 0.8% to $92.15 per barrel as geopolitical risks boosted prices and the dollar
Asian stocks fell on Wednesday as a renewed selloff in technology shares combined with rising tensions in the Middle East after US forces struck Iran, pushing oil prices higher and supporting demand for the dollar.
South Korea's Kospi Index, seen as a gauge of artificial intelligence-related investments, fell 1.7%, while Japan's Nikkei also declined. S&P 500 futures slipped 0.2% and Hang Seng futures lost 0.7%.
The moves followed a volatile session on Wall Street, where pressure on chipmakers dragged technology stocks lower and extended a shift away from the sector that has powered much of this year's market rally.
Investors also monitored developments in the Middle East after US forces attacked Iran following the downing of an American helicopter. Brent crude rose 0.8% to $92.15 a barrel, while the dollar strengthened against all other Group-of-10 currencies as traders sought safer assets amid concerns that the attacks could threaten a ceasefire and efforts to reopen the Strait of Hormuz.
Market Rotation
US stock futures were little changed after sharp moves in the previous session. The Nasdaq 100 fell 1.1% on Tuesday as investors continued reducing exposure to technology shares.
At the same time, gains spread across other parts of the market. Nine of the S&P 500's 11 sectors advanced, led by defensive sectors. Real estate rose 2.1%, health care gained 1.3% and utilities added 1.1%. Technology and energy were the only sectors to decline.
The shift marked a change from a rally that had become increasingly concentrated among a small group of large technology companies.
Commodities Check
Elsewhere, the Japanese yen traded near its weakest level since April, keeping market participants alert for any intervention from Japanese authorities.
Gold fell 1% to about $4,220 an ounce.
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