Asian Shares Drop After Micron Technology Sales Outlook Disappoints, Tech Giants Hit

Asian Shares Drop as Micron Technology’s Sales Outlook Disappoints, Tech Giants Take Hit

In a recent turn of events, Asian shares took a hit as Micron Technology Inc.’s sales outlook fell short of the highest forecasts, impacting giant tech companies in late Wall Street trading. Stocks in Japan, Hong Kong, South Korea, and China all declined, leading the MSCI Asia Pacific gauge on course for its first loss in three days.

The yen also saw some fluctuations, as it pared some of its declines from Wednesday when it tumbled to 160.87 per dollar, marking its weakest level since 1986. This drop in the currency market comes amid concerns about the strength of the dollar and the potential impact on emerging-market currencies.

Meanwhile, the tech sector saw significant movement, with Micron Technology shares slumping in extended US trading after the company’s disappointing sales outlook. This news also dragged down other chipmakers, including giant Nvidia Corp.

Market experts are closely watching the situation, with concerns about the overall market breadth and the reliance on big tech companies. The recent volatility in the tech sector has raised questions about the sustainability of the rally, leading to uncertainty among investors.

In the broader market, Asia Pacific companies and governments have been active in the primary bond market, with sales of dollar bonds hitting a nine-month high this week. This trend suggests that issuers are looking to lock in historically tight spreads before they potentially climb further.

Overall, the market remains cautious as investors await key economic data releases and events later this week. With concerns about inflation and market breadth lingering, the coming days could bring further volatility and uncertainty to global markets.