(Rewrites, updates prices, adds European and US futures and
analyst comment)
* MSCI's Asia-Pacific index reverses losses, South Korean
stocks up but trim gains
* Analysts caution about renewed risk of volatility in
equities following Tuesday's selloff
* European futures down, US futures flat ahead of Micron
Technology's ( MU ) earnings
By Satoshi Sugiyama
TOKYO, June 24 (Reuters) - Asian stocks struggled for
direction on Wednesday while crude oil prices extended declines
to hover near four-month lows, as analysts cautioned about
renewed volatility from stretched AI valuations and the
prospects for U.S.-Iran peace talks.
MSCI's broadest index of Asia-Pacific shares outside Japan
was last up 0.4% after swinging gains and
losses. South Korean shares, which plunged 10% on
Tuesday in their sharpest one-day drop since March, rallied
3.5%, while Japan's Nikkei shed 0.4% and Taiwan stocks
lost 1.9%
"Price action in markets over the last seven trading days
has been alarming, not just when it falls, but also when it
rises," said Michael McCarthy, market analyst at Moomoo
Securities Australia. "When markets move so rapidly, in either
direction, it's a sign of instability."
Oil prices fell more than 1% on Wednesday, extending this
week's losses and trading near four-month lows, on signs that
more oil tankers stranded in the Gulf are set to move out of the
Strait of Hormuz.
Still, uncertainty remains over the durability of the accord.
The U.S. and Iran have provided conflicting accounts on what
the two countries had agreed on as part of their peace deal,
including key elements such as nuclear inspections and control
of the Strait of Hormuz.
That gap in perceptions between Washington and Tehran "could
become a source of concern going forward," Monex Securities'
Yoshitaka Araya said.
Taking cues from Asia, European futures were mostly down.
The pan-region Euro Stoxx 50 futures and German DAX
futures each fell 0.3%, while FTSE futures lost
0.67%. U.S. futures were largely steady, with S&P 500 E-minis
up 0.1%, Nasdaq 100 E-minis 0.2% higher and Dow
E-minis flat. The yield on benchmark U.S. 10-year notes
fell 0.6 basis points to 4.487%.
Later on Wednesday, memory chipmaker Micron Technology ( MU )
is set to release its earnings, which could offer clues
on the outlook for the memory and AI chip sector after a searing
rally this year.
In currency markets, the U.S. dollar extended gains to reach
a fresh 13-month high against a basket of major currencies, with
the dollar index edging 0.07% higher to 101.46.
The dollar's strength has weighed heavily on the yen,
which traded at 161.53, keeping markets on edge over a potential
currency intervention to prop up the battered Japanese
currency.
A summary of opinions from the Bank of Japan's meeting this
month, in which the central bank decided to raise interest rates
to a 31-year high of 1.00%, released on Wednesday showed
policymakers debated mounting inflation risks, with some calling
for faster interest rate increases to raise borrowing costs
nearer levels deemed neutral to the economy.
The euro weakened 0.15% at $1.1364 and sterling
eased to $1.3192.
Spot gold extended losses, falling 1.1% to $4,064.01
an ounce, touching an almost two-week low as higher rate
expectations reduced the appeal of non-yielding assets.
In cryptocurrencies, bitcoin gained 0.2% to
$62,499.52. Ether lost 0.2% to $1,658.09.
(Reporting by Satoshi Sugiyama; Editing by Lincoln Feast.)