(Bloomberg) — Shares in Asia fell after US tech companies dropped in late US trading. The yen stabilized following a Wednesday slide that triggered fresh speculation officials will step in to support the currency.

Most Read from Bloomberg

Stocks in Japan, Australia and China all declined, putting the MSCI Asia Pacific gauge on course for its first loss in three days. US equity futures slipped after big tech was hit by Micron Technology Inc.’s outlook that failed to meet the lofty expectations for the industry that has powered the bull market in stocks.

The yen was marginally higher Thursday after dropping 0.7% in the prior session when it touched 160.87 per dollar, the weakest since 1986 and well past the level where officials intervened in April. The currency has lost more than 12% against the greenback this year.

An emerging-market currency gauge dropped to near its lowest in two months and a gauge of Asian currencies fell to levels last seen in 2022 as traders flocked to the safety of the dollar. Treasuries extended their recent declines on concern Friday’s US PCE data will show inflation remains elevated.

“It’s all about the Fed — higher for longer is keeping the front end of rates very high, drawing money into the US and keeping the dollar strong,” said Andrew Brenner, head of international fixed income at NatAlliance Securities LLC. For Japan, “it’s a problem,” he said.

Micron Technology shares slumped after the maker of computer memory chips projected sales that trailed the estimates of some investors. The news dragged down some chipmakers including giant Nvidia Corp.

Also after Wall Street’s close, the Federal Reserve said the biggest US banks passed the annual stress test, paving the way for higher shareholder payouts.

The recent market attempt to broaden out of the megacap group was short-lived, with a bevy of measures still showing how market breadth remains weak — boosting uncertainty about the rally’s staying power. Bifurcation between S&P 500 performance and breadth has reached one of the worst levels in three decades, according to Bloomberg Intelligence.

“The stock market is way too reliant on big tech — period and end of story,” said David Bahnsen at The Bahnsen Group. “Whether or not the past week’s volatility in tech is the start of something deeper or if that reckoning is still forthcoming remains to be seen, but excessive investor sentiment, euphoria and overdone momentum always ends the same.”

Story continues

Elsewhere, Asia Pacific companies and governments’ sales of dollar bonds in the primary market hit a nine-month high this week, as issuers look to lock in historically tight spreads before they climb further.

India’s $1.3 trillion sovereign debt market has become a magnet for global investors. However, this newfound interest highlights how difficult doing business in the world’s most populous country can be for outsiders.

In commodities, gold steadied after a two-day decline, while West Texas Intermediate edged lower.

Key events this week:

• China industrial profits, Thursday

• Eurozone economic confidence, consumer confidence, Thursday

• US durable goods, initial jobless claims, GDP, Thursday

• Nike releases earnings, Thursday

• Japan Tokyo CPI, unemployment, industrial production, Friday

• US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday

• Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.3% as of 11:35 a.m. Tokyo time

• Nikkei 225 futures (OSE) fell 0.8%

• Japan’s Topix fell 0.4%

• Australia’s S&P/ASX 200 fell 1%

• Hong Kong’s Hang Seng fell 1.8%

• The Shanghai Composite fell 0.7%

• Euro Stoxx 50 futures fell 0.3%

• Nasdaq 100 futures fell 0.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0691

• The Japanese yen rose 0.2% to 160.47 per dollar

• The offshore yuan was little changed at 7.2956 per dollar

• The Australian dollar was little changed at $0.6650

Cryptocurrencies

• Bitcoin was little changed at $60,951.35

• Ether fell 0.2% to $3,382.55

Bonds

• The yield on 10-year Treasuries was little changed at 4.34%

• Japan’s 10-year yield advanced 4.5 basis points to 1.075%

• Australia’s 10-year yield advanced nine basis points to 4.40%

Commodities

This story was produced with the assistance of Bloomberg Automation.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.