US, European, Asian Equities Mixed – Alphabet Compounds Sell Pressure
The United States (U.S.), European, and Asian equities markets delivered mixed performance across key indices amid shifting investor sentiment.
A sharp sell-off in Japanese equities set the dominant tone across global markets overnight, as the Nikkei 225 tumbled 5.82%, its steepest single-session decline in recent months, First National Bank (FNB) said in a brief on Friday.
The sharp decline was primarily driven by renewed concerns about the Bank of Japan’s policy trajectory and a strengthening yen, which weighed on export-sensitive stocks.
The Hang Seng Index fell 1.98%, pressured by continued caution around Chinese growth prospects and weakness in technology shares. The ASX 200 retreated 0.79% as commodity-linked stocks came under pressure alongside softer metals prices.
US equities retreated on Thursday, with the Nasdaq Composite down 1.47%, the S&P 500 off 0.51%, and the Dow Jones slipping 0.20%, as a sharp sell-off in semiconductor stocks drove the decline after Taiwan Semiconductor Manufacturing’s solid earnings were overshadowed by a higher-than-expected capital spending forecast, reigniting concerns over whether lofty artificial intelligence valuations are justified.
Alphabet compounded the pressure on technology shares, sinking after Google was reportedly months behind schedule on delivering its Gemini 3.5 Pro model.
European equities turned in a mixed session on Thursday, with the FTSE 100 rising 0.54%, supported by a return to GDP growth in the United Kingdom in May and strength in consumer staples.
Meanwhile, the Euro Stoxx 50 edged up 0.29% as ASML’s post-earnings rally helped offset broader weakness in technology. Escalating geopolitical risk also weighed on sentiment across the region, briefly pushing Brent crude above $85 a barrel.
The South African Johannesburg Stock Exchange (JSE) is set for a weaker open this morning as a broad risk-off wave sweeps through global markets, with all major futures pointing lower ahead of the local open.
Tencent fell 3.88% in Hong Kong, a move that will weigh directly on Naspers and Prosus given their substantial exposure to the Chinese technology giant.
The ASX 300 Metals and Mining Index declined 3.34%, providing a negative read across for local resource counters and miners at the open.
Spot gold edged marginally firmer, offering modest support to gold miners, while platinum is under meaningful pressure, casting a shadow over precious metals counters on the JSE.
The local bourse delivered a mixed session on Thursday, with the All Share Index and the Top 40 closing somewhat flat as gains in financials were largely offset by a sharp pullback in resources.
Financials (+0.84%) were the clear outperformer and are on track to post a weekly gain amid strength in the local banks. Industrials jumped 0.16%, extending gains for the second consecutive session, buoyed by solid momentum in Industrial Materials (+3.36%).
Resources tumbled 1.04%, as escalating US-Iran hostilities in the Strait of Hormuz stoked fears of a global demand slowdown and pushed base metals lower on rising interest rate expectations.
