* MSCI's Asia-Pacific shares index fall 0.02%. South Korean
stocks rebound 2.2%
* Analysts caution about renewed risk of volatility in
equities following Tuesday's selloff
* BOJ meeting summary showed some board members called for
further rate hikes
By Satoshi Sugiyama
TOKYO, June 24 (Reuters) - Asian stocks were wobbly on
Wednesday, a day after a global selloff in technology and
semiconductor shares, with analysts cautioning about the risk of
renewed volatility.
MSCI's broadest index of Asia-Pacific shares outside Japan
was down 0.02%. South Korean shares,
which plunged 10% on Tuesday in their sharpest one-day drop
since March, jumped 2.2%, while Japan's Nikkei was
swinging between gains and losses, last down 0.8%.
"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."
Risk-off sentiment swept Wall Street overnight, tracking moves
in Europe and Asia. U.S. stocks fell on concerns about rising
debt-funded AI spending and speculation that the Federal Reserve
could adopt a more hawkish stance, while Treasury yields
declined as investors sought the safety of government debt.
The Dow Jones Industrial Average lost 0.09%, the S&P
500 fell 1.4%, and the Nasdaq Composite fell
2.2%. The yield on benchmark U.S. 10-year notes fell
1.41 basis points to 4.493%.
Oil prices extended this week's losses, trading near
four-month lows hit in the previous session, on signs that more
oil tankers stranded in the Gulf since the start of the Iran war
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.
The dollar's strength has weighed heavily on the Japanese
yen, which hovered near 40-year lows at 161.57 per
dollar, keeping markets on edge over a potential currency
intervention to prop up the battered 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 some
board members called for further interest rate hikes to push the
central bank's policy rate closer to levels deemed neutral to
the economy.
The dollar index, which measures the greenback against a
basket of currencies including the yen and the euro, rose 0.02%
to 101.43, holding near its one-year high. The euro was
down 0.06% at $1.1375. In Britain, the pound GBP=
weakened 0.08% to $1.3192.
Spot gold extended losses, down 0.48% to $4,088.71 an
ounce as higher rate expectations reduced the appeal of
non-yielding assets.
In cryptocurrencies, bitcoin gained 0.84% to
$62,914.94. Ethereum rose 0.43% to $1,669.35.
(Reporting by Satoshi Sugiyama; Editing by Lincoln Feast.)