BEIJING (dpa-AFX) - Asian markets declined on Monday as a selloff in tech shares gathered momentum following Broadcom's disappointing AI outlook.
Markets were also spooked by higher bond yields and interest rate worries after U.S. jobs data for May blew past expectations.
The dollar scaled a two-month peak while gold fell towards $4,300 an ounce as traders ramped up bets on a Federal Reserve rate hike this year.
Brent crude futures jumped more than 4 percent above $97 a barrel, rebounding from a two-session decline after Iran and Israel exchanged missile strikes, casting doubt on the futures of a fragile ceasefire in the Middle East.
China's Shanghai Composite index tumbled 1.70 percent to 3,959.34 and Hong Kong's Hang Seng index ended down 1.22 percent at 24,657.06 on concerns about tech valuations.
Japanese markets slumped after a plunge in U.S. stocks last week. Investors also reacted to weak data that showed the Japanese economy grew slower than initially estimated in the January-March quarter.
The Nikkei average plunged 3.85 percent to 64,024.60, extending losses for a third day running. The broader Topix index settled 2.45 percent lower at 3,852.38.
Sumco lost 12.8 percent on valuation concerns while SoftBank, Advantest and Tokyo Electron plummeted 6-7 percent.
Seoul stocks nosedived as foreign selling intensified amid AI-bubble fears and a warning from authorities against excessive forex volatility. The Kospi index plunged 8.29 percent to 7,484.41 despite trading restrictions kicking in shortly after the market open.
Samsung Electronics lost 10.2 percent and SK Hynix gave up 7.7 percent on fears that the artificial intelligence rally had gone too far.
Australian markets ended notably lower, with mining and gold stocks leading losses. The benchmark S&P/ASX 200 dropped 0.70 percent to 8,625.10 while the broader All Ordinaries index closed 0.68 percent lower at 8,855.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.94 percent to 13,038.24, hitting a two-week low.
U.S. stocks slumped on Friday, wiping out nearly $2 trillion in market value, as a surprisingly strong jobs report added to fears that the Federal Reserve will keep interest rates higher for longer.
The yield on the two-year Treasury note climbed to a 15-month high of 4.16 percent as data showed non-farm payroll employment shot up by 172,000 jobs in May while economists had expected an addition of 85,000 jobs.
The jobless rate held steady at 4.3 percent and job figures for March and April were revised up in a sign of resilient labor market, despite economic headwinds from the Iran war.
The tech-heavy Nasdaq Composite plummeted 4.2 percent, marking its biggest single-day drop since April 2025 as major investment funds continued to pull money out of AI and microchip companies. The S&P 500 shed 2.6 percent and the Dow gave up 1.4 percent.
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