Asian markets are poised for a cautious start on Thursday after US equities declined broadly overnight, with technology stocks leading the sell-off. S&P 500 futures edged slightly higher in early Asian trading, suggesting the pressure may ease at the open.
The Dow Jones Industrial Average fell 768 points, or 1.9%, to close at 49,919 on Wednesday. The S&P 500 shed 1.6% to end at 7,267, while the Nasdaq Composite dropped 2.0% to 25,170, extending a five-day losing streak for the tech-heavy index.
Early futures trading showed modest recovery attempts. S&P 500 futures rose to 7,273 and Nasdaq futures edged up to 28,522, though both remained below their previous session highs.
In currency markets, the US dollar held firm against the Japanese yen at 160.53, maintaining pressure on Japanese equities. The Nikkei 225 was tracking sharply lower in pre-market indications, extending the week's volatile trading pattern.
Commodity markets offered a mixed signal. Crude oil advanced 1.9% to US$92.28 per barrel, supported by supply concerns and robust demand forecasts. Gold, however, fell sharply by 5.7% to US$4,088 per ounce, reflecting reduced safe-haven demand amid shifting interest rate expectations.
The Hang Seng Index was also pointing to a lower open, tracking the overnight weakness on Wall Street. Investors across the region are watching US Federal Reserve commentary for signals on the interest rate trajectory, which has been a key driver of recent market volatility.
Trading volumes are expected to be moderate during the Asian session, with markets awaiting direction from China's upcoming economic data releases and any policy signals from regional central banks.
Sources: Yahoo Finance (https://finance.yahoo.com)
