Asian Stock Market: Sell-off in US techs weighs on Asian indices, oil struggles around $79.00

Investors dumped US technology stocks in anticipation of poor earnings and weak guidance.
Japanese stocks remained positive as BoJ Ueda reiterates the need for an ultra-dovish monetary policy.
South Korea’s KOSPI has witnessed an intense sell-off after mixed preliminary GDP data.

Sagar Dua FXStreet

Markets in the Asian domain are facing immense selling pressure as a sell-off in United States technology stocks recorded on Monday ahead of their quarterly earnings. This week, investors will remain busy amid quarterly results from Amazon, Google, Meta Platforms, and Microsoft. Investors are worried that the impact of higher interest rates from the Federal Reserve (Fed) will be visible in their corporate earnings and they may also impact the revenue guidance.

S&P500 futures are showing significant losses in the Asian session after a choppy Monday, portraying caution among market participants. The US Dollar Index (DXY) has found an intermediate cushion around 101.20 after a rigorous sell-off. The downside in the USD Index seems favored as investors have digested anticipation of consecutive 25 basis points (bps) interest rate hike from the Federal Reserve (Fed).

At the press time, Japan’s Nikkei 225 gained 0.23%, Shanghai dropped 0.35%, Hang Seng plummeted 1.54%, KOSPI dived 1.78%, and Nifty50 remains flat.

Japanese stocks have hogged the limelight as investors are anticipating a continuation of the expansionary monetary policy stance from Bank of Japan (BoJ) Governor Kazuo Ueda. While speaking in the Japanese parliament on Tuesday, new BoJ Governor Kazuo Ueda said, “Trend inflation remains below 2% but gradually accelerating, which is partly due to the effect of monetary easing.” He further added, “It takes very long for the impact of monetary policy steps to appear on economy, prices.

South Korea’s KOSPI has witnessed an intense sell-off after mixed preliminary Gross Domestic Product (GDP) data. The South Korean economy has grown by 0.3% in the first quarter of CY2023 while the street was anticipating a growth rate of 0.2%. On an annual basis, the GDP has declined to 0.8% from the estimates of 0.9%.

On the oil front, oil prices are attempting to overstep the immediate resistance of $79.00. The oil price rebounded on Monday as investors believe that a steady interest rate guidance from the Fed will recede recession fears.

Nikkei 225

Overview
Today last price	28699.24
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	28699.24

Trends
Daily SMA20	28197.49
Daily SMA50	27805.92
Daily SMA100	27369.25
Daily SMA200	27525.59

Levels
Previous Daily High	28727.04
Previous Daily Low	28540.42
Previous Weekly High	28744.85
Previous Weekly Low	28385.28
Previous Monthly High	28630.69
Previous Monthly Low	26446.43
Daily Fibonacci 38.2%	28655.75
Daily Fibonacci 61.8%	28611.71
Daily Pivot Point S1	28584.09
Daily Pivot Point S2	28468.95
Daily Pivot Point S3	28397.47
Daily Pivot Point R1	28770.71
Daily Pivot Point R2	28842.19
Daily Pivot Point R3	28957.33

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD appears well offered near 1.3160

GBP/USD builds on Tuesday’s losses, although it now manages to pick up some pace and bounce off earlier multi-month troughs near 1.3140. The Greenback’s solid performance and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD softens to near 1.1350 as Fed hike bets rise ahead of PCE inflation data

The EUR/USD pair declines to around 1.1355 during the early Asian trading hours on Thursday. The Euro weakens to its lowest level since June 2025 against the US Dollar as traders increase their bets on US interest rate hikes later this year. The US May Personal Consumption Expenditures inflation data will be the highlight on Thursday.

Gold off YTD lows, still struggles around $4,000 on hawkish Fed bets

Gold is off year-to-date lows, still struggling around $4,000 in the Asian session on Thursday as bears pause following the overnight slump to the lowest level since November 2025. Despite easing inflationary concerns amid falling oil prices, elevated Fed rate-hike bets help the US Dollar preserve its recent strong gains to the highest level since May 2025, weighing on non-yielding bullion.

Crypto market sheds over 50% of its value amid Bitcoin's brief decline below $60K

The crypto market has erased more than half of its value since reaching an all-time high in late 2025. The decline underscores the severity of the recent bear market and lack of a fresh catalyst to revive investor interest, according to a Wednesday X post by The Kobeissi Letter. The total crypto market cap peaked at a record $4.3 trillion on October 6, 2025.

US-Iran talks: The next 60 days will decide where Oil prices go next

Oil markets received some encouraging news after weeks of rising tensions in the Middle East. But let’s not get ahead of ourselves: we’re far from victory, and markets just seem to have priced out the worst-case scenario. The US and Iran have reportedly made "substantive progress" in talks in Switzerland and agreed on a framework for working toward a broader deal within 60 days.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.