Asian equities tumble on AI rally concerns, lifting safe-haven USD demand while US PCE inflation matches forecasts at 4.1% YoY.
Technology stocks led a global selloff Friday, pushing Japan’s Nikkei 225 4.5% lower and Nasdaq futures down over 1% in early European trade. Surging chip costs and inflation fears triggered a reassessment of the AI-driven rally’s durability.
South Korea’s KOSPI shed 8% on the day, while US data showed May PCE inflation at 4.1% YoY, matching expectations after April’s 3.8% rise. Durable goods orders fell 4.5% MoM, and initial jobless claims held at 215K.
The USD Index steadied below 101.50, supported by risk aversion despite no high-impact economic releases scheduled for the session.