Asian Stocks Drop as Chip Selloff Deepens, Oil Climbs: Markets Wrap

Asian equities fell for a second day as a deepening selloff in chipmakers dragged down regional markets, with MSCI's Asia Pacific gauge dropping 1.9% and Japan's Nikkei 225 losing 4%, driven by mounting concerns that massive AI investments may not justify lofty valuations. Brent crude climbed above $85 a barrel, up 12% for the week, as escalating Middle East hostilities and slumped shipping traffic in the Strait of Hormuz rekindled inflation worries, while the yen hovered near 162 per dollar prompting Japanese Finance Minister warnings of possible intervention.

Why it matters: The Philadelphia Semiconductor Index has dropped about 19% from its June peak, Netflix fell 9% after forecasting slowing sales growth, and Alphabet sank 4.4% amid reports that Google's flagship AI model is months behind schedule.