<figure id="attachment_2783750" aria-describedby="caption-attachment-2783750" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-2783750" src="https://media.freemalaysiatoday.com/wp-content/uploads/2024/06/adc6f7cd-japan-market.jpg" alt="" width="1600" height="1067" /><figcaption id="caption-attachment-2783750" class="wp-caption-text">Stocks retreated from record highs on fears equity markets were overstretched, heightening the risk of a significant correction. (AP pic)</figcaption></figure>
SINGAPORE: Asian stocks extended an overnight selloff on Wall Street in early trading on Wednesday as investor concerns about stretched valuations sapped confidence.
MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan was down 0.8%, led by declines in South Korean shares with a loss of 4.1%. US e-mini futures moved 0.4% lower after a 1.2% drop for the S&amp;P 500 overnight.
&#8220;It’s a sea of red across broad markets,&#8221; said Chris Weston, head of research at Pepperstone Group in Melbourne. &#8220;There aren’t many reasons to buy here, and until we move closer to Nvidia’s earnings on Nov 19, the market lacks a short-term catalyst.&#8221;
Stocks are retreating from record highs on fears equity markets may have become overstretched after the CEOs of Wall Street heavyweights Morgan Stanley and Goldman Sachs questioned whether sky-high valuations can be sustained.
Last month, banking giant JPMorgan Chase&#8217;s CEO Jamie Dimon had warned of a heightened risk of a significant correction in the US stock market within the next six months to two years.
The warnings come as a surge in enthusiasm for generative AI has swept across stock markets worldwide this year, drawing comparisons to the dot-com bubble.
Japan&#8217;s Nikkei stock index slid 2.5%, with SoftBank Group shares plunging 10%.
The US dollar dropped 0.2% against the yen to 153.41 after the release of minutes from the Bank of Japan&#8217;s September policy meeting,
The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, briefly touched a five-month high of 100.25.
The yield on benchmark 10-year Treasury notes edged lower to 4.0697% compared with its US close of 4.091% on Tuesday.
Bitcoin fell below US$100,000 for the first time since June, but rebounded afterwards and was last up 0.2% at US$100,499.70. Gold attempted to recover after three consecutive days of losses, and was trading 0.1% higher at US$3,936.48 per ounce.
The European single currency was little changed in early trading at US$1.1484 after hitting a three-month low following five straight days of declines.
Brent crude was last unchanged at US$64.44 per barrel.

MatchPoint Times

Asian markets pull back as stretched valuation fears jolt Wall Street

Lack of short-term catalysts fuels concerns about whether AI’s inflated prices can be sustained, echoing the dot-com bubble.

Bursa pares gains, opens lower amid regional losses

Cleaning the house that built the shame