Source: Reuters (via feed)
Asian shares declined on Friday amid lingering concerns about technology company valuations and geopolitical tensions in the Middle East. The Japanese yen and U.S. Treasuries gained as investors sought safer assets. Markets also remained cautious due to the uncertain impact of developments around artificial intelligence.
Meanwhile, energy markets stayed volatile because of ongoing unrest in Iran. Market participants weighed the potential risk to global oil supplies. Despite this, some regional indexes showed limited movement. The overall risk-off mood reflected cautious investor sentiment.
Additionally, the performance of tech stocks influenced Asian equity markets negatively. This was partly due to fears about overvaluation and future earnings. Investors appeared to rotate into assets perceived as more stable amidst the turbulence. As a result, the safe-haven demand for the yen and Treasuries increased.
Market reactions to tech valuations and geopolitical risks influence asset allocation, affecting currency and bond markets globally.
