Asia stocks fall as chip rally cools, US-Iran tensions weigh
Author Ambar Warrick
Published06/03/2026, 10:59 PM
Asia stocks fall as chip rally cools, US-Iran tensions weigh
Asia stocks fall as chip rally cools, US-Iran tensions weigh
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Investing.com-- Asian stocks fell on Thursday as technology and chipmaking stocks retreated from recent gains, while persistent doubts over a U.S.-Iran peace deal kept markets broadly risk-averse.
Regional markets took a negative lead-in from Wall Street, which fell from record highs overnight as uncertainty over Iran spurred some profit-taking.
S&P 500 Futures fell 0.4% afterhours, with chip stocks tracking deep losses in Broadcom after the chip designer posted mixed earnings and guidance.
Losses in Broadcom also spilled over into Asian markets, with the chip-heavy KOSPI among the worst performers in the region.
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Nikkei sinks as BOJ says it will discuss interest rate hikes
Japan’s Nikkei 225 index fell 1.9%, while the TOPIX index shed 1.4% on Thursday.
Losses in local stocks came after Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank must discuss the pros and cons of raising interest rates in the face of rising inflationary risks.
Speaking at a seminar, Ueda warned that inflation could overshoot targets on the energy shock from the Iran war. While he did not explicitly signal any rate hikes, his comments pointed to the increasing possibility of a rate hike when the BOJ meets later in the month.
Japanese markets were also pressured by losses in tech and chipmaking stocks, after a strong run-up in the sector pushed the Nikkei to record highs this week.
SoftBank Group Corp. (TYO:9984) was the biggest weight on the Nikkei, down nearly 11%.
S.Korea’s KOSPI slides on chip losses
South Korea’s KOSPI index was also a major underperformer, losing as much as 2% on deep losses in chipmaking stocks.
Majors such as Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) fell between 2% and 4% after hitting a series of record highs as traders locked in recent profits.
Mixed earnings and guidance from Broadcom– which slid 12% in U.S. aftermarket trade– also weighed on the sector, after the chip designer posted disappointing quarterly revenue and maintained its AI sales guidance for the current quarter.
Broader Asian markets largely retreated amid persistent concerns over the U.S.-Iran war, especially after a flare-up in hostilities over the past week. The status of U.S.-Iran negotiations remained unclear after Iranian media reports said Tehran had halted indirect communications with Washington.
Australia’s ASX 200 fell 1.4%, while Singapore’s
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