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Reuters reported that MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.39 percent on the day. South Korean shares extended losses to 4.16 percent while Japan’s Nikkei index fell 0.94 percent after an earlier slide of as much as 2.05 percent. Technology firms led the declines with Samsung Electronics down 6 percent and SK Hynix plunging nearly 10 percent in Seoul. In Tokyo Kioxia lost 8.2 percent and Tokyo Electron fell 5.18 percent as the moves followed a weaker Wall Street session where the Nasdaq snapped a multi-day winning streak.
The pullback in semiconductor and related stocks reflected ongoing investor caution over the sustainability of returns from artificial intelligence spending according to market participants cited by Reuters. Shares of Advanced Micro Devices stumbled after quarterly results that beat estimates but fell short of elevated expectations while concerns persisted about the ability of related businesses to fund data center expansions. This reversal stood in contrast to gains seen earlier in 2026 when the MSCI index jumped more than 2 percent in a single session amid AI optimism and initial Iran peace hopes Reuters dispatches from May showed.
A senior Iranian source told Reuters that a proposed agreement involving Oman would grant Tehran control over ships entering the Gulf via the Strait of Hormuz marking one of the largest concessions yet in efforts to end the five-month war with the United States. Separate Reuters reporting from August 4 detailed Iran’s demands for inbound shipping oversight and visibility on outbound traffic under a temporary plan discussed with Oman. The critical waterway accounts for a significant portion of global energy trade and its status has influenced market volatility throughout the conflict period.
Oil prices remained stable in tight trading with Brent crude futures declining 0.55 percent to settle at 79.01 dollars per barrel and West Texas Intermediate futures easing 0.65 percent to 74.73 dollars. Madison Cartwright senior geo-economics analyst at Commonwealth Bank of Australia said in remarks to Reuters that a deal to reopen the strait could be reached by early September though he remained sceptical about its immediacy. Cartwright added that Iran still has more leverage and will extract additional concessions from the U.S. under any new deal.
In the United States ADP figures showed private employers added 44,000 workers in July slowing from 95,000 the prior month and falling short of forecasts by about 25,000 according to data referenced by Reuters. Economists polled by the news service expect the government’s nonfarm payrolls report due Friday to show an addition of 80,000 jobs after a 57,000 gain in June with the unemployment rate forecast to hold at 4.2 percent. Futures markets priced in a 54 percent chance of a Federal Reserve rate hike at the September meeting down slightly from the previous day per the CME FedWatch tool.
Early European trading saw pan-regional Euro Stoxx 50 futures rise 0.18 percent with German DAX futures up 0.26 percent and FTSE futures gaining 0.06 percent Reuters indicated. The yield on benchmark U.S. 10-year notes fell 0.83 basis points to 4.609 percent while U.S. stock futures pointed to a mixed open with S&P 500 E-minis up 0.17 percent. The dollar held steady at 157.75 yen following last week’s joint intervention by Japanese and U.S. authorities.
Spot gold advanced 0.2 percent to 4,254.10 dollars an ounce extending gains for a fourth consecutive session while spot silver declined 0.38 percent to 61.84 dollars an ounce according to Reuters pricing. The latest developments come after a semiconductor rout in mid-July that drove the MSCI Asia-Pacific index down 2.7 percent with Japan’s Nikkei tumbling 4 percent as reported by the news service at the time. Investors now await further clarity from the upcoming U.S. employment data and any updates on the Iran diplomatic track.
