Asian Markets Slip as Tech Weakens and Dollar Strengthens Ahead of Key Data

Asian equities were affected on Wednesday as renewed pressure on US technology stocks and a stronger dollar influenced sentiment across the region. Traders adopted a cautious stance ahead of this week’s economic releases, leaving major indices in negative territory by the afternoon session.

Tech Losses Trigger Regional Pullback

Shares in leading US tech companies fell overnight, dragging down futures and setting a softer tone for Asian markets. Investors continue to reassess high-growth valuations after a series of mixed earnings reports and signs of cooling demand in certain segments of the sector.

Markets in Japan, South Korea and Taiwan, all home to major tech exporters, were among the hardest hit. Semiconductor-linked stocks saw broader declines as traders turned more defensive.

Dollar Strength Adds Pressure to Regional Currencies

The US dollar strengthened against most major currencies, putting additional pressure on Asian exchange rates. The move came as traders positioned themselves ahead of key US inflation and employment data due later this week.

The Japanese yen and South Korean won both weakened, whilst the Australian and New Zealand dollars also slipped in early trading. A firmer dollar often leads to capital outflows from emerging markets.

Commodities Drift and Markets Await Direction

Oil prices eased slightly and industrial metals traded narrowly as markets looked for clearer signals from China’s next round of data releases. Traders in Singapore and Hong Kong said liquidity was softer than usual as participants waited for catalysts from the US. Gold, it held steady near recent highs.

What Traders Are Watching

For forex traders, the dollar’s momentum will be a key theme in the days ahead, particularly against the yen and commodity-linked currencies.

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