(Updates prices before European open, adds quarterly milestones
for Asian stocks)
* Japan's Nikkei slumps over 4%, South Korea's KOSPI down 6%
* Selloff comes after big gains for the quarter to record
highs
* Nasdaq futures skid 1.3%, yen languishes near 40-year lows
* Oil falls towards four-month lows; gold down nearly 12%
this month
By Stella Qiu
SYDNEY, June 26 (Reuters) - Asian shares pulled back on
Friday after a stellar quarter, as Apple's ( AAPL ) hefty price hikes
revealed the downside of booming chip demand, while the threat
of Japanese intervention kept the yen from hitting 40-year
lows.
Oil prices fell toward their lowest in fourth months, with Brent
crude futures down 1.5% to $74.1 a barrel, as Saudi
Aramco resumed oil loading at its Ras Tanura terminal after a
halt of almost four months. More stranded oil tankers have
crossed the Strait of Hormuz with the help of military escorts,
although a cargo ship was hit by a projectile.
Nasdaq futures tumbled 1.3% in Asia, as investor
sentiment soured after a media report that OpenAI is considering
holding off on its public debut until next year. European
bourses were bracing for a lower open, with pan-region stock
futures off 0.8%.
Shares of Apple ( AAPL ) slid 6.1% overnight after the tech
giant announced steep price increases for iPads and MacBooks to
counter the surging cost of memory and storage chips. That wiped
about $250 billion off of its market value. Microsoft ( MSFT )
is raising prices for its Xbox gaming consoles by up to $150
worldwide.
The price increases tempered investor enthusiasm about a
blowout earnings report from chipmaker Micron this week,
whose shares surged almost 16% overnight to a record high.
Apple's ( AAPL ) price increases were a reflection of how "big tech may
at some point start to feel the pain of these higher component
costs, and that can become a broader ecosystem headwind," said
Charu Chanana, chief investment strategist at Saxo.
"That is why markets are becoming more cautious. Higher input
costs, heavier capex needs and rising funding demands are making
investors more selective about AI exposure."
Analysts also said month-end and quarter-end rebalancing flows
might have contributed to the weakness and choppy prices in big
tech companies, which have outperformed for much of the second
quarter.
On Friday, MSCI's broadest index of Asia-Pacific shares outside
Japan fell 3%, bringing its weekly loss to 4.4%,
as investors took profits from a 23% quarterly gain, the best
since 2009. It was down 2.8% for the month.
Japan's Nikkei slumped 4.2% and was headed for a
weekly drop of 2.7%%. It has climbed 4.5% for the month and
surged 35% for the quarter, the biggest quarterly gain in its
history.
South Korea's KOSPI was last down 5.8%, after
slumping as far as 8% earlier to triggering a circuit breaker.
It was down 7% for the week, but still managed a monstrous 66%
gain for the quarter, the best since 1998.
Hong Kong's Hang Seng index fell 1.7%, but it was down
8.5% for the quarter, marking the third straight quarter of
declines to be an outlier in the region.
YEN WEAK
In the currency markets, the yen teetered near its
weakest level against the dollar in 40 years at 161.60, well
beyond the 160 level that many see as a line in the sand for
Japanese authorities.
It found little relief even as a U.S. inflation reading met
forecasts and traders trimmed bets for a rate hike from the
Federal Reserve in September.
Separate data also showed the U.S. economy grew faster than
previously estimated in the first quarter thanks to a downward
revision to imports, but consumer spending almost stalled,
casting doubt on growth momentum in the second quarter.
The dollar index, which measures the greenback's strength
against a basket of six major peers, slipped 0.1% to 101.36, but
remained not far from its strongest level since May 2025. It has
risen 0.6% this week.
Treasury yields slipped on Friday. 2-year yields
fell 2 basis points at 4.0942% to mark a fourth day of declines,
while ten-year yields eased 1 bps at 4.3804%, having
hit a nearly two-month low of 4.3627% in the previous
session.
Precious metals have had a rough month, with spot gold
down 11.5% to $4,011 an ounce and spot silver
sliding 24.5% to $56.7 an ounce.