Yen Hits Nearly 40-Year Low, Asian Stocks Fail to Follow Wall Street Higher

Hong Kong (CNA) - Wall Street tech stocks stabilized after a heavy sell-off in the past two weeks, and Asian tech stocks followed suit with a rebound today, while the yen hit a nearly 40-year low against the dollar.

According to AFP, as markets grew optimistic about the potential end of the Iran crisis and the reopening of the Strait of Hormuz, investors refocused on central bank monetary policies and the future development of the artificial intelligence (AI) boom.

Tech stocks, which had driven global stock markets higher and set new records for many companies, recently suffered a sharp decline due to concerns about overvaluation, interest rate trends, and when investors would see returns. However, after the sell-off, bargain hunting led to a strong rebound in the New York market, with the Dow Jones Industrial Average reaching a new high and the Nasdaq Composite Index surging over 20%.

This was largely attributed to strong performances from companies like Amazon, Meta, and NVIDIA among the "Magnificent Seven."

Stephen Innes, an analyst at SPI Asset Management, stated, "After a record sell-off in big tech stocks last week, buyers have returned to the same names that were heavily sold off just days ago."

"This doesn't mean the AI craze has suddenly returned, but rather that market panic has temporarily stopped bleeding, allowing buyers to start bargain hunting and push stock prices up. For Asia, especially South Korea and Japan, this is the moment to take the baton."

Japan's benchmark Nikkei index closed up 0.9% today at 70062.32. Hong Kong's Hang Seng Index closed down 0.6% at 22881.02. The Shanghai Composite Index closed up 0.5% at 4094.40.

Among other Asian markets, Taipei, Seoul, Bangkok, and Wellington stock markets closed higher. Sydney, Singapore, Kuala Lumpur, Jakarta, and Manila stock markets closed lower. (Compiled by Ho Hung-ju) 1150630

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